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Acknowledgment of Large-Scale Government Contract Awards Worth Rs 54,000 Crores

Defense Ministry to finalize a substantial Rs 7,000 crore agreement next week, purchasing 307 state-of-the-art Advanced Towed Artillery Gun Systems (ATAGS) and accompanying 327 towing vehicles, bolstering the "Make in India" initiative in military weaponry.

Acknowledgement of Major Financial Agreements Worth 54,000 Crores
Acknowledgement of Major Financial Agreements Worth 54,000 Crores

Acknowledgment of Large-Scale Government Contract Awards Worth Rs 54,000 Crores

The Indian defense ministry is set to sign a deal worth Rs 7,000 crore for 307 advanced towed artillery gun systems (ATAGS) and 327 towing vehicles, marking a significant step in strengthening India's indigenous defense capabilities.

The ATAGS, an indigenously developed artillery gun system by DRDO (Defence Research and Development Organisation) in collaboration with Indian industry partners, is a state-of-the-art artillery gun system with long-range accuracy. The system integrates advanced technologies like automated gun laying, navigation, and muzzle velocity radar systems, enhancing operational reliability and firepower, critical for modern battlefield scenarios.

Indigenous development of the ATAGS is expected to reduce dependency on foreign suppliers and boost India's self-reliance in defense production. Over 65% of the components for ATAGS are domestically sourced.

The Indian defense ministry is also planning to acquire "Varunastra" torpedoes for the Indian Navy. The defense acquisition council has granted Acceptance of Necessity (AoN) for both the upgrading of the T-90 tank's engine and the procurement of Varunastra torpedoes.

The AoN has been granted for the Air Force's Airborne Early Warning & Control (AEW&C) aircraft systems as well. The AEW&C aircraft systems, intended for the Navy and Air Force respectively, are designed to provide early detection, tracking, and monitoring of enemy aircraft, ships, and missiles.

The DAC has decided to reduce procurement timelines by half to prevent delays in acquiring critical arms and ammunition. This decision is expected to accelerate the modernization of India's defense forces.

Timeline:

  • Deal approved: March 2025
  • First regiment induction expected: February 2027

Companies and Organizations Involved:

  • DRDO led the development of ATAGS.
  • Indian private sector and public sector companies are involved in manufacturing and system integration, supporting the Indian Army's procurement.

These changes will be included in the new defense acquisition procedure (DAP). The order for ATAGS will be split between Bharat Forge (60%) and Tata Advanced Systems (40%). The Cabinet Committee on Security, headed by Prime Minister Narendra Modi, has cleared this deal.

These developments demonstrate India's commitment to modernizing its defense forces while supporting Make in India initiatives in the defense sector. The indigenously developed ATAGS and Varunastra torpedoes are set to significantly enhance combat capabilities across all three forces (Army, Navy, and Air Force).

The indigenously developed ATAGS will not only reduce India's dependency on foreign suppliers but also boost self-reliance in defense production, enhancing the combat capabilities of the Army. Additionally, the planned acquisition of Varunastra torpedoes for the Indian Navy will further augment the naval forces' capability, contributing to the modernization of all three forces – Army, Navy, and Air Force.

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