NEW DELHI: India is set to finalize at least four major defence contracts, valued collectively at over Rs 1.5 lakh crore, before the end of the current fiscal year on March 31. These deals are part of a long-term strategy to enhance the firepower and combat capabilities of the Indian Armed Forces.
The first deal is a Rs 63,000 crore contract with France for the direct acquisition of 26 Rafale-Marine fighter jets, which will operate from the indigenous aircraft carrier INS Vikrant. This agreement, covering 22 single-seat jets, four twin-seat trainers, as well as associated weapons, simulators, crew training, and a five-year logistics support package for the 36 Rafales already inducted into the Indian Air Force (IAF), is awaiting final approval from the Prime Minister-led Cabinet Committee on Security (CCS), sources told TOI.
Another major contract with France involves the acquisition of three additional Scorpene-class diesel-electric submarines, equipped with air-independent propulsion (AIP) for extended underwater endurance. The Rs 38,000 crore deal will see the submarines built at Mazagon Docks Limited (MDL) in Mumbai, with the first submarine expected to be delivered by 2031. This will add to the six existing Scorpene-class submarines already produced under the over Rs 23,000 crore ‘Project-75’. The sixth submarine, ‘Vagsheer’, will be commissioned on January 15, alongside the guided-missile destroyer Surat and stealth frigate Nilgiri, in a ceremony attended by PM Narendra Modi.
Sources indicated that the Rafale deal could be cleared by the CCS before the end of January, followed closely by the Scorpene submarine deal. PM Modi is also scheduled to visit France in February for the Artificial Intelligence Summit.
Additionally, India is negotiating two other significant contracts: one for 156 indigenous Prachand light combat helicopters worth around Rs 53,000 crore, and another for 307 advanced towed artillery gun systems (ATAGS) valued at Rs 8,500 crore. The Prachand helicopters, which are capable of performing offensive operations in high-altitude regions such as Siachen and eastern Ladakh, will be manufactured by Hindustan Aeronautics Limited (HAL). This follows a previous order for 15 helicopters under a Rs 3,887 crore contract signed in 2022.
The ATAGS, developed by the Defence Research and Development Organisation (DRDO), boasts a strike range of up to 48 km and will be produced by Bharat Forge and Tata Advanced Systems. Bharat Forge will manufacture 60% of the guns, while Tata will handle the remaining 40%. There are expectations that the order for ATAGS may expand in the future as the Army plans to induct advanced versions, with a total requirement of 1,580 guns.
The goal is to finalize all four contracts by the end of this fiscal year. Meanwhile, work is also underway to revise the Defence Acquisition Procedure-2020 to reduce procurement timelines, streamline processes, and ensure a level playing field for all vendors, according to sources.
