NEW DELHI: The defence ministry on Thursday signed contracts worth ₹2,500 crore for a new anti-tank weapon called Nag missile system (NAMIS) and light vehicles to boost the military’s capabilities, an official statement said.
It signed a ₹1,801-crore contract with Armoured Vehicle Nigam Limited (AVNL) for NAMIS, paving the way for the induction of the anti-tank weapon system into the mechanised infantry. The army secured approvals for NAMIS for reconnaissance and support battalions (13 Nag missile carriers and 293 missiles) around three years ago. NAMIS has been developed by the Defence Research and Development Organisation (DRDO).
The ministry also signed two deals with Force Motors Ltd and Mahindra & Mahindra Ltd for around 5,000 light vehicles for the armed forces.
“It (the NAMIS contract) marks a significant milestone in the modernisation of the anti-tank capability of the mechanised infantry, enhancing the Indian Army’s operational readiness across a varied spectrum of operations,” the defence ministry said in the statement. It described NAMIS as one of the most sophisticated anti-tank weapon systems against enemy armour, with fire-and-forget anti-tank missiles and sighting systems for enhanced firepower and lethality.
All contracts were signed under the Buy (Indian-IDDM) category. The Indian-IDDM category is the most important category of acquisition for indigenisation under the defence procurement policy. IDDM stands for indigenously designed, developed and manufactured.
On the light vehicles, the ministry said these would provide mobility to the armed forces in all types of terrain and operational conditions.
“Both procurements will enhance indigenisation and national defence equipment manufacturing capabilities. The projects have immense potential of direct and indirect employment generation by encouraging the MSME sector through components’ manufacturing,” the statement added.
The new deals came a day after the defence ministry signed two contracts worth ₹6,900 crore with Bharat Forge Limited and Tata Advanced Systems Limited (TASL) to boost the Indian Army’s firepower with 307 locally made artillery guns along with high mobility towing vehicles.
India has taken a raft of measures to boost self-reliance in the defence manufacturing sector during recent years. These include imposing phased import bans on different types of weapons and systems, creating a separate budget for buying locally made military hardware, increasing foreign direct investment (FDI) from 49% to 74% and improving ease of doing business.
On February 1, India set aside more than ₹6.81 lakh crore for defence spending in the Union Budget, including ₹1.8 lakh crore for the modernisation of the military. In all, 75% of the modernisation outlay will be spent on buying weapons and equipment from domestic sources to boost self-reliance in the defence manufacturing sector.