MoD and BEL officials with senior IAF officials after signing the deal. (Photo: MoD)
New Delhi: In a major boost for self-reliance in the defence manufacturing sector, the Ministry of Defence has inked a Rs 2,385-crore contract with Bharat Electronics Limited to buy electronic warfare suites, modification kits and associated equipment for the Indian Air Force’s Mi-17 V5 helicopters. Following this, on Tuesday, BEL shares jumped 4.06% to ₹284.25.
“This state-of-the-art EW Suite will considerably enhance operational survivability of the helicopters in hostile environment. Majority of sub-assemblies and parts will be sourced from indigenous manufactures. The project will boost and encourage active participation of Indian electronics and associated industries, including MSMEs,” the defence ministry said in a statement.
The contract was signed under the Buy (Indian-IDDM) category.
The Indian-IDDM category is the most important category of acquisition for indigenization under the defence procurement policy. IDDM stands for indigenously designed, developed and manufactured.
India has taken several 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.
The Combat Aircraft Systems Development & Integration Centre (CASDIC) is a DRDO lab under Defence Electronics Research Laboratory (DLRL), Hyderabad, which develops and integrates combat aircraft systems.
The EW suite comprises radar warning receiver (RWR), missile approach warning system (MAWS) and counter measure dispensing system (CMDS) which significantly enhance the combat survivability of the helicopters along with effective counter measures.
"With this, BEL has now accumulated orders totalling ₹2,803 crore in the current financial year, the company said in a statement.
The BEL is a Navratna PSU under the Ministry of Defence.
It manufactures electronic products and systems for the Indian Army, Indian Navy, and the Indian Air Force.
The government remains BEL's largest shareholder with the current shareholding of 51.14%.
The company's consolidated net profit surged 52.5% to ₹1,310.95 crore on 38.6% rise in revenue from operations to ₹5,770.69 crore in Q3 FY25 over Q3 FY24.
