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NIBE, Tata Bag Rs 1,577-Crore Army Contracts for Loiter Munitions

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Loiter Munitions contract
Defence Secretary Rajesh Kumar Singh with senior officials of NIBE and TASL during the signing of contract in New Delhi

The Ministry of Defence has signed contracts worth Rs 1,577 crore with Tata Advanced Systems Ltd (TASL) and Pune-based NIBE Ltd for the Indian Army’s acquisition of loiter munition systems (also called suicide or kamikaze drones), strengthening its precision-strike capability at ranges of up to 100 km.

The contracts, signed in New Delhi in the presence of Defence Secretary Rajesh Kumar Singh, cover 84 loiter munition systems, 840 loiter munitions and associated equipment. The procurement has been processed under the ‘Buy Indian’ category through the Fast Track Procedure.

The contracts mandate 60% overall indigenous content, including at least 50% in materials, components, and software.

TASL, the L-1 vendor, will supply 54 loiter munition systems and 540 munitions, accounting for 64% of the order, for around Rs 1,000 crore. NIBE, the L-2 vendor, will supply 30 systems and 300 munitions (36%) under its Vayuastra programme for around Rs 580 crore, according to defence sources.

The systems are designed to give the Army a precision-strike option at ranges beyond the reach of conventional artillery and below that of longer-range missile systems.

Under Phase-I, a limited number of artillery regiments and batteries have already been equipped with loiter munition systems. More units are now being brought under the capability through the latest procurement.

The Defence Ministry said the acquisition would enhance the operational effectiveness of Artillery Regiments and give a major boost to indigenous defence manufacturing under the government’s Atmanirbhar Bharat initiative.

The equipment is scheduled to be delivered within 12 months of the date of advance payment.

Team BharatShakti

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