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MoD signs 3 Defence Contracts worth ∼Rs 5,400cr for Indian Army & Indian Navy

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MoD signs 3 defence contracts worth ₹5,400 cr for Army, NavyOn March 29, 2023, the Ministry of Defence (MoD) has signed three contracts worth ∼ Rs 5,400 crore for Indian Army (IA), and Indian Navy (IN) under the Buy {Indian – IDMM (Indigenously Designed Developed and Manufactured)} to boost defence capabilities of India.

These include the following:

i.Two contracts are signed with Bharat Electronics Limited (BEL) worth Rs 2,400 crore viz.

  • Procurement of Automated Air Defence Control and Reporting System ‘Project Akashteer’ for IA worth Rs 1,982 crore
  • Acquisition of Sarang Electronic Support Measure (ESM) systems along with associated Engineering Support Package from BEL, Hyderabad at an overall cost of Rs 412 crore for the Indian Navy.

ii.One contract is signed with the NewSpace India Limited (NSIL), a Central Public Sector Enterprise (CPSE) under the Department of Space, Bengaluru (Karnataka) for Rs 2,963 crore for an advanced communication satellite, GSAT (Geosynchronous Satellite System) 7B, for IA.

Key Points:

i.Project Akashteer will provide a modernized domestic capability for the IA’s Air Defence units to operate cohesively, allowing for monitoring of low-level airspace and effectively managing ground-based air defence weapon systems in battle zones, ultimately empowering them with a state-of-the-art system.

ii.Sarang is an advanced ESM system for helicopters of IN, designed and developed indigenously by the Defence Electronics Research Laboratory (DLRL) – Defence Research and Development Organization (DRDO), Hyderabad in Telangana under the programme, Samudrika.

  • The contract for Sarang ESM systems along with associated engineering support package from BEL, Hyderabad will generate an employment of approximately two lakh man-days over a period of 3 years.

Note: The two aforementioned projects will promote the involvement of Indian Electronics and associated industries, as well as MSMEs (Micro, Small, and Medium Enterprises), who are sub-vendors of BEL.

iii.GSAT 7B, geostationary satellite, being a first-of-its-kind in the 5-tonne category, will be developed indigenously by the Indian Space Research Organisation (ISRO) to improve the communication capabilities of IA by providing mission-critical beyond line of sight communication to troops, formations, weapon and airborne platforms.

  • The project will source various parts, sub-assemblies, and systems from indigenous manufacturers, including MSMEs and start-ups, in line with the vision of ‘Aatmanirbhar Bharat’.
  • The project is expected to generate employment for approximately three hundred thousand man-days over a period of 3 and half years.

MoD & BEL signs Rs 1700 crore Contract for 13 Lynx-U2 Fire Control Systems for Indian Navy

On 30th March 2023, MoD signed a contract worth Rs 1,700 crore with BEL for the procurement of 13 Lynx-U2 Fire Control Systems for Indian Navy.

  • The contract is signed under Buy Indian – IDMM category.

Lynx-U2 System: 

i.Lynx-U2 System is a Naval Gun Fire Control System designed and developed indigenously. This 4th generation complete indigenous system is capable of accurate tracking and engaging targets amidst sea clutter and air/surface targets.

ii.This will be installed on New Generation Offshore Patrol Vessels, which will be built indigenously at Garden Reach Shipbuilders & Engineers and Goa Shipyard Limited


i.This will create employment of around 2 lakh man-days over a period of 4 years.

ii.This will also promote participation of Indian industries, including Micro, Small & Medium Enterprises(MSMEs), and contribute to the efforts of the Indian government to achieve ‘Aatmanirbharta’ in defence.

Recent Related News:

i.On 8th February 2023, the Ministry of Defence (MoD) signed a contract with Larsen & Toubro (L&T) to procure 41 indigenous Modular Bridges for the Corps of Engineers of the Indian Army, a combat support arm which provides combat engineering support, develops infrastructure for armed forces. The bridges will be procured at an estimated cost of over Rs 2,585 crore.

ii.On January 10, 2022, the Defence Acquisition Council (DAC) approved Acceptance of Necessity (AoN) for three capital acquisition – two of the Indian Army (IA) and one of the Indian Navy (IN) – proposals worth Rs 4,276 crore during a meeting under the chairmanship of Union Minister Rajnath Singh, Ministry of Defence (MoD) in New Delhi, Delhi.

About Ministry of Defence (MoD):

Union Minister– Rajnath Singh (Constituency- Lucknow, Uttar Pradesh)
Minister of State– Ajay Bhatt (Constituency- Nainital-Udhamsingh Nagar, Uttarakhand)