In Aatmanirbhar push, MoD makes indigenous purchases worth Rs 40K cr

The Ministry of Defence (MoD) on Friday signed five major capital acquisition contracts worth Rs 39,125 crore as part of the 'Make-in-India' initiative to bolster indigenous capabilities and reduce dependency on foreign original equipment manufacturers (OEMs).

Of the five contracts, one was with Hindustan Aeronautics Limited (HAL) for the procurement of aero engines for MiG-29 aircraft. Two were with Larsen & Toubro (L&T) for procurement of close-in weapon systems (CIWS) and high-power radars (HPR), and the other two were with BrahMos Aerospace Private Limited (BAPL) for procurement of BrahMos missiles and ship-borne BrahMos systems for the navy.

Portraying these purchases as triumphs of aatmanirbharta (self-sufficiency), the MoD said: “The deals will further strengthen indigenous capabilities, save foreign exchange and reduce dependency on foreign original equipment manufacturers (OEMs)” in the future. 

The contract for RD-33 aero engines for MiG-29 aircraft was signed with HAL at a cost of Rs 5,249 crore. The aero engines will be produced by the Koraput Division of HAL. They are expected to help the Indian Air Force (IAF) by maintaining the operational capability of the MiG-29 fleet for its residual service life.

The aero-engines will be manufactured under a Transfer of Technology (TOT) licence from the Russian OEM. The programme will indigenise several high-value critical components of the RD-33 aero-engines, which would increase the indigenous content of future repair and overhaul (ROH) tasks.

The contract for procurement of CIWS was signed with L&T at a cost of Rs 7,669 crore. The CIWS will provide terminal air defence to select locations in the country. The project will boost the participation of Indian aerospace and defence industries, including micro, small and medium enterprises (MSMEs). It will generate direct and indirect employment for 2,400 people annually for five years.

The deal for procurement of HPR has also been signed with L&T at Rs 5,700 crore. It will replace the IAF’s existing long-range radars with modern “active aperture phased array”-based HPR with advanced surveillance features that will significantly enhance the terrestrial air defence capabilities of the IAF. This will boost indigenous radar manufacturing technology by being the first such radar built by the private sector. It will provide direct and indirect employment to about 1,000 people annually for five years.

The contract for BrahMos missiles has been signed with BrahMos Aerospace for Rs 19,519 crore. These missiles would meet the combat, outfit and training requirements of the Indian Navy. It is likely to generate employment of nine lakh man-days in the BrahMos joint venture and 135 lakh man-days in ancillary industries, including MSMEs.

The contract for buying ship-borne BrahMos systems has also been signed with BrahMos Aerospace for Rs 988 crore. The BrahMos is the navy's primary weapon for maritime strike operations from frontline warships, striking land or sea targets from extended ranges, with pinpoint accuracy, at supersonic speeds. The project is likely to generate employment of around 60,000 man-days over 7-8 years.