MoD signs three contracts worth ₹5,400 crore

Context: Ministry of Defence (MoD) has signed three contracts worth ₹5,400 crores recently. All these projects are under Buy {Indian – IDMM (Indigenously Designed Developed and Manufactured)} category.

Major Highlights

  • Two contracts were signed with Bharat Electronics Limited (BEL) worth ₹2,400 crores for the procurement of:
    • Automated Air Defence Control and Reporting System ‘Project Akashteer’ for the Army
    • Sarang Electronic Support Measure (ESM) systems for the Navy.
  • Another ₹2,963 crore contract was signed with NewSpace India Limited (NSIL) for an advanced communication satellite, GSAT 7B, for the Army. 

Project Akashteer

  • ‘Project Akashteer’ worth ₹1,982 crores is an automated air defence control and reporting system that will allow the army’s air defence units to operate in an integrated manner.
  • It will enable monitoring of low-level airspace over the battle areas of the Indian Army and effectively control the ground-based air defence weapon systems.

Sarang Electronic Support Measure (ESM) systems

  • The second contract worth ₹412 crores with BEL is for Sarang Electronic Support Measure systems for Indian Navy helicopters. ‘Sarang’ is designed and developed indigenously by the Defence Electronics Research Laboratory, Hyderabad under the programme, Samudrika.
  • It will generate employment of approximately two lakh man-days over a period of three years.


  • The five-tonne geostationary satellite will be developed indigenously by Indian Space Research Organisation (ISRO).
  • The satellite will considerably enhance the communication capability of the Indian Army by providing mission-critical beyond-line-of-sight communication to troops and formations as well as weapon and airborne platforms.
  • The Army is likely to get the satellite in 2026. Unlike the Indian Air Force and the Navy, the Army currently does not have a dedicated satellite.

Many parts and sub-assemblies and systems of the satellite will be sourced from indigenous manufacturers, including micro, small and medium enterprises (MSMEs) and start-ups. The project will generate employment of around 300,000 man-days over the next three-and-a-half years.

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