The Ministry of Defence has signed significant contracts worth ₹4,106 crore for critical defence equipment across multiple branches. According to official statements, these agreements were signed in New Delhi on October 15, 2026 and cover two distinct but strategically important defence capabilities. The contracts represent a substantial investment in India's defence modernisation efforts, with both agreements focusing on indigenously designed and manufactured systems for the armed forces. The signing ceremony was conducted in the presence of Shri A. Anbarasu, Additional Secretary and Director General (Acquisition), Department of Defence.
The ₹2,563 crore contract for GSAT-7C has been awarded to New Space India Limited (NSIL), Bengaluru, as reported by official statements. The indigenously designed, developed and manufactured satellite is intended to provide secure, resilient and seamless communication capabilities for the IAF's assets. According to the ministry's media statement, the acquisition of dedicated communication satellite capability is expected to enhance secure communication for IAF assets. "This indigenously designed, developed & manufactured satellite will enhance the secure, resilient & seamless communication capabilities for the assets of the Indian Air Force, thereby strengthening operational effectiveness," the statement said. The project represents a domestic manufacturing push in a strategically sensitive segment where secure communication systems are integral to military preparedness.
The ₹1,543 crore contract has been signed with Bharat Dynamics Limited (BDL), Hyderabad, for Varunastra heavy-weight torpedoes for the Indian Navy, according to official statements. The torpedo is electrically propelled and designed to target enemy submarines in deep and shallow waters, with induction into the Indian Navy occurring in 2016. As per the ministry's statement, it can be fired from ships and submarines, both in deep and shallow waters, and weighs around 1,850 kilograms. The Varunastra is capable of travelling at a maximum speed of 40 knots and has a range of around 40 kilometres. BDL's involvement places a public-sector defence manufacturer at the centre of the programme, adding to the role of domestic defence manufacturers in supplying specialised equipment for India's naval forces.
According to official statements, both contracts mark a significant step towards advancing domestic defence manufacturing and promoting self-reliance in critical technologies. The agreements align with the government's Aatmanirbhar Bharat and Make in India initiatives, with domestic entities NSIL and BDL involved in the two programmes. The combined value of ₹4,106 crore reflects procurement spending across satellite communications and naval weapons systems, demonstrating the continued emphasis on indigenously designed and manufactured systems for the armed forces. The contracts highlight India's continued emphasis on domestic defence manufacturing and technological self-reliance, with major defence projects supporting the development of technical expertise and creating opportunities for Indian companies and research institutions. The satellite system is intended to strengthen the IAF's dedicated communication capabilities, while the torpedo will enhance the Navy's anti-submarine warfare capabilities in the region.
