2 weeks ago
Defence Ministry signs record Rs 1,577 crore loitering munition contracts
The Indian government's Defence Ministry has signed a very big deal worth about Rs 1,577 crore.
The deal is with two Indian companies: Tata Advanced Systems and NIBE.
They will build special drones called 'loitering munitions' for the Indian Army.
These drones can fly towards an area, wait in the air looking for a target, and then dive onto it.
They can travel more than 100 kilometres, helping soldiers hit faraway targets.
The order includes 84 complete systems and 840 drones, the biggest one-time drone order in Indian military history.
Tata will make most of them (about 64%) and NIBE will make the rest.
Buying from Indian companies helps India become more self-reliant in making its own defence equipment.
India's Prime Minister, Narendra Modi, said India should also become a seller of defence technology to other countries, not just a buyer.
The entire order should be delivered within 12 months.
India's Ministry of Defence signed contracts worth about Rs 1,577 crore with Tata Advanced Systems Limited (TASL) and NIBE Private Limited to supply loitering munition systems to the Indian Army.
Defence officials described the deal as the biggest-ever one-time purchase order for drones in Indian military history, covering 84 systems and 840 munitions.
TASL, the L1 vendor, will supply 54 sets with 540 munitions (64%), while NIBE will supply 30 sets with 300 munitions (36%), with its confirmed order valued at Rs 563.35 crore.
The 'kamikaze' loitering munitions, able to strike targets beyond 100 km, will equip the Army's new Shaktibaan and Divyastra formations and complement efforts like the IAF's Sureshastra Mk1 and naval loiter munition programmes.
Prime Minister Narendra Modi, in his 80th Independence Day address from the Red Fort, named defence power the fifth 'Shakti' of his 'Shakti Ki Saptadhara' vision and called for India to become a global defence supplier.
- Who
- India's Ministry of Defence, represented by Defence Secretary Rajesh Kumar Singh, and Indian vendors Tata Advanced Systems Limited (TASL) and NIBE Private Limited; Prime Minister Narendra Modi also addressed the defence push.
- What
- Signed contracts worth approximately Rs 1,577 crore to procure 84 loitering munition systems, 840 loiter munitions and accessories for the Indian Army, described as the biggest-ever one-time drone purchase order in Indian military history.
- Where
- New Delhi, India.
- When
- August 13-14, 2026 (the article states the agreements were inked on August 14, while the Ministry of Defence tweet says 13 Aug 2026).
- Why
- To strengthen the Indian Army's artillery precision-strike capability and advance indigenous defence manufacturing under the 'Buy (Indian)' category via the Fast Track Procedure.
Key facts
- Contract Value
- Approximately Rs 1,577 crore
- Vendors
- Tata Advanced Systems Limited (TASL) and NIBE Private Limited
- Order Quantity
- 84 loitering munition systems, 840 loiter munitions and accessories
- Vendor Split
- TASL (L1): 54 sets/540 munitions (64%); NIBE (L2): 30 sets/300 munitions (36%), NIBE order worth Rs 563.35 crore
- Procurement Route
- 'Buy (Indian)' category via Fast Track Procedure
- Delivery Timeline
- Within 12 months from contract signing date
- Signing Date and Place
- August 13-14, 2026, New Delhi (article says August 14; MoD tweet says 13 Aug 2026)
- Operational Role
- Equips the Army's Shaktibaan and Divyastra formations with loitering munitions capable of striking targets beyond 100 km
Quotes
Tata Advanced Systems Limited CEO
Chief executive officer of Tata Advanced Systems Limited
“"The Ministry states that procuring from Indian vendors under FTP will further strengthen the vision of self‑reliance in defence."”
financialexpress.com
“"The fifth strength of the Saptadhara is defence power. It is important for us to become self‑reliant in defence."”
financialexpress.com
Sources
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