India eyes mega defence deals worth Rs 1.5 lakh crore before March 31

India is poised to finalize several high-value defense deals aimed at bolstering the combat and operational capabilities of its armed forces. These agreements, collectively worth over ₹1.5 lakh crore, are expected to be sealed before the end of this fiscal year (March 31, 2025). Here’s an overview:

Key Defense Deals

  1. Rafale-Marine Fighters (₹63,000 crore):
    • Purpose: Direct acquisition of 26 Rafale-M fighter jets for the Indian Navy to operate from INS Vikrant.
    • Details: Includes 22 single-seat jets, 4 twin-seat trainers, weapons, simulators, training, and five years of logistical support.
    • Status: Awaiting final approval from the Cabinet Committee on Security (CCS), likely by the end of January.
  2. Scorpene Submarines (₹38,000 crore):
    • Purpose: Acquisition of 3 additional Scorpene-class submarines with Air-Independent Propulsion (AIP) technology for extended underwater endurance.
    • Details: To be built at Mazagon Docks Limited (MDL) in Mumbai.
    • Timeline: First submarine expected by 2031, with the next two delivered annually thereafter.
    • Context: Complements six Scorpene submarines built under the earlier Project-75.
  3. Prachand Light Combat Helicopters (₹53,000 crore):
    • Purpose: Procurement of 156 indigenous Prachand helicopters (90 for the Army, 66 for the IAF).
    • Manufacturer: Hindustan Aeronautics Limited (HAL).
    • Capability: Designed for high-altitude operations, such as those in Siachen Glacier and eastern Ladakh.
    • Background: Adds to the 15 units already inducted under a ₹3,887 crore deal in 2022.
  4. Advanced Towed Artillery Gun Systems (ATAGS) (₹8,500 crore):
    • Purpose: Procurement of 307 ATAGS with a strike range of up to 48 km.
    • Manufacturers: Bharat Forge (60% production) and Tata Advanced Systems (40% production).
    • Future Expansion: The Army plans to acquire more advanced versions, targeting a total of 1,580 ATAGS.

Strategic Implications

  • Modernization: These acquisitions align with India’s long-term defense modernization strategy.
  • Indigenization: Strong focus on domestic production with HAL, Bharat Forge, and Tata playing pivotal roles.
  • Geopolitical Partnerships: Strengthened defense ties with France, marked by high-value deals and upcoming PM Modi’s visit to Paris for the Artificial Intelligence Summit in February.

Policy Revisions

  • The Defence Acquisition Procedure-2020 is being revised to streamline procurement timelines, enhance processes, and ensure a level playing field for vendors.

These developments reflect India’s commitment to building a robust defense infrastructure while leveraging both international partnerships and domestic manufacturing capabilities.

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