India Approved Defence Purchases Worth Rs 4.2 Lakh Crore In 2024 — HAL, L&T, Mazagon Dock Major Winners
In Budget for FY24, the Defence Ministry had received an outlay of Rs 6.22 lakh crore, 5% higher than the previous year.
File image of Tejas fighter jet, developed by Hindustan Aeronautics Ltd. (Source: Company website)
India approved defence acquisitions amounting to Rs 4.22 lakh crore till November this year, with major beneficiaries being domestic companies including Hindustan Aeronautics Ltd., Mazagon Dock Shipbuilders Ltd. and Larsen & Toubro Ltd.
"Defence Acquisition Council (DAC) and Defence Procurement Board (DPB), during 2024 (upto November), accorded Acceptance of Necessity (AoN) for 40 Capital Acquisition proposals amounting to Rs 4,22,129.55 crore," the Ministry of Defence said in its year-end review report on Thursday.
Out of these, orders worth Rs 3.97 lakh crore or 94% of the total outlay have been accorded to be procured from indigenous sources, it said.
The orders include air defence systems and radars, fast patrol vessels, helicopters, aircrafts, navigation systems, electronic warfare suite, etc.
In the Union Budget for fiscal 2024, the Defence Ministry received an outlay of Rs 6.22 lakh crore, 5% higher than the previous year.
Out of the total capital procurement budget, 75% has been earmarked for domestic industry.
The government has focused on defence indigenisation to advance local technological base, minimise costly imports, and shed reliance on foreign powers.
Top Winners
HAL
In September, a contract was signed with HAL for 240 AL-31FP Aero Engines for Su-30MKI aircraft at over Rs 26,000 crore, the Defence Ministry pointed out in its release. In December, a contract for 12 Su-30MKI aircraft with associated equipment was finalised at approximately Rs 13,500 crore, it added.
In addition, two contracts worth Rs 8,073.17 crore were signed with the company in March for the acquisition of 34 Advanced Light Helicopters Dhruv Mk III—25 for the Indian Army and nine for the Indian Coast Guard. In the same month, a contract for the midlife upgrade of 25 Dornier aircraft for the Indian Navy was signed for Rs 2,890 crore.
Additionally, a contract for RD-33 Aero Engines for MiG-29 aircraft was inked at Rs 5,249.72 crore.
Bharat Electronics
The company bagged the deal for supply of 11 Shakti electronic warfare systems along with associated equipment to the Indian Navy at a total cost of Rs 2,269 crore in February.
Mazagon Dock Shipbuilders
A contract was inked with the company in January for acquisition of 14 multi-role fast patrol vessels for the Indian Coast Guard. The deal value is Rs 1,070 crore.
L&T
Two contracts for procurement of close-in weapon system at a cost of Rs 7,669 crore, and high-power radar at a cost of Rs 5,700 crore were signed with the company in March.
An order for procurement of 155 mm/52 calibre K9 VAJRA-T self-propelled tracked artillery guns for the Indian Army at a total cost of Rs 7,629 crore was received by L&T in November.
Cochin Shipyard
The company was awarded a deal for short refit and dry docking of aircraft carrier INS Vikramaditya at an overall cost of Rs 1,207.5 crore in November.
