New Delhi: The Ministry of Defense (MoD) has inked five major contracts worth Rs 39,125.39 crore with the country’s major defence firms on Friday in New Delhi  with the end goal of strengthening India's indigenous defence capabilities and promoting the Make in India initiative. Among the contracts, one is with Hindustan Aeronautics Limited (HAL) for procuring aero engines for MiG-29 aircraft. That means soon the MiG-29s are slated to get an upgraded version of the RD-33 engines.

Two contracts were inked with Larsen & Toubro (L&T) for the procurement of close-in weapon systems (CIWS) and high-power radars (HPR). Last week, the Cabinet Committee on Security approved and green-lighted the acquisition, and the deal would be worth somewhere around Rs 13,000 crore. Additionally, two contracts were signed with BrahMos Aerospace Private Limited (BAPL) for procuring BrahMos missiles and anti-ship BrahMos systems for the Indian Defense Forces. This acquisition too got its nod last week from the CCS for Rs 19000 crore.

All About the 5 Capital Acquistions: Engines for MiG-29, CIWS, Radars & BrahMos

The contracts, as the Ministry puts forth, are a step towards reducing dependency on foreign equipment manufacturers, thereby saving foreign exchange. The deal with HAL for RD-33 Aero Engines for MiG-29 aircraft is valued at Rs 5,249.72 crore, and Mod states that this will increase the operational capability of the Indian Air Force (IAF) by sustaining the MiG-29 fleet.

Similarly, the contracts with Larsen & Toubro Limited for CIWS (Rs 7,668.82 crore) and HPR (Rs 5,700.13 crore) aim to provide terminal air defence and enhance the terrestrial air defence capabilities of the IAF, respectively. These contracts are expected to generate  employment opportunities and would in turn benefit various sectors, including aerospace, defence, and associated industries, the MoD added in its statement.

The procurement of BrahMos missiles from BAPL (Rs 19,518.65 crore) will cater to the combat outfit and training requirements of the Indian Navy. Additionally, the acquisition of shipborne BrahMos systems (Rs 988.07 crore) will further strengthen the Indian Navy's maritime strike capabilities. These projects are estimated to generate employment opportunities, including both direct and indirect employment in ancillary industries.

The MoD in its statement added that by investing in domestic production capabilities, India has the primary goal of enhancing its defence preparedness while simultaneously boosting economic growth through job creation.  The exchange ceremony was attended by Defense Minister Rajnath Singh and Defense Secretary Giridhar Aramane.