Govt Signs Rs 2,000 Crore Deal with BEL for Indigenous Air Defence Radars for Indian Army

On July 25, 2025, the Ministry of Defence (MoD) signed a landmark Rs 2,000 crore contract with Bharat Electronics Limited (BEL) for the procurement of advanced Air Defence Fire Control Radars (ADFCR) for the Indian Army. This deal, formalized under the Buy (Indian-Indigenously Designed, Developed, and Manufactured) category, marks a significant step toward modernizing the Army’s air defence capabilities and advancing India’s self-reliance in defence manufacturing under the Aatmanirbhar Bharat initiative.

A Leap Forward in Air Defence Modernization

The ADFCRs, designed by the Defence Research and Development Organisation (DRDO) and manufactured by BEL, are state-of-the-art systems with a minimum of 70% indigenous content. These radars are engineered to detect, track, and engage a wide spectrum of airborne threats, including fighter jets, attack helicopters, and enemy drones, even in challenging conditions such as adverse weather, day or night operations, and enemy jamming attempts. Their modular design ensures ease of deployment, operation, and maintenance, making them a critical asset for the Indian Army’s Air Defence Regiments.

The radars provide precise, real-time data on a target’s position, speed, and direction, enabling accurate fire control solutions for air defence guns to neutralize threats effectively. Equipped with Electronic Countermeasure (ECM) capabilities, these systems are resilient against electronic warfare tactics, ensuring reliability in complex combat scenarios. The induction of these radars is expected to significantly enhance the Army’s operational readiness, particularly in the context of recent operations like Operation Sindoor, which demonstrated India’s growing military prowess.

Boosting Indigenous Defence Manufacturing

The Rs 2,000 crore contract, signed in the presence of Defence Secretary Rajesh Kumar Singh in New Delhi, underscores the government’s commitment to fostering indigenous defence production. By prioritizing local design and manufacturing, the deal aligns with the Make in India initiative, reducing India’s dependence on foreign equipment. The project is expected to stimulate the domestic economy by involving Indian Micro, Small, and Medium Enterprises (MSMEs) in component manufacturing and raw material supply, creating jobs and strengthening the defence industrial ecosystem.

India’s defence production has seen remarkable growth, reaching a record Rs 1.46 lakh crore in 2024-25, with exports touching Rs 24,000 crore, as highlighted by Defence Minister Rajnath Singh at a recent Confederation of Indian Industry (CII) summit. The minister emphasized that the contribution of over 16,000 MSMEs has been pivotal in building a robust supply chain, with indigenous systems proving their mettle in operations like Sindoor. This contract with BEL further cements India’s position as a growing hub for defence manufacturing, with its weapons and systems reaching nearly 100 countries.

Discrepancies in Reported Contract Value

While most sources report the contract value as approximately Rs 2,000 crore, some, including BEL’s own BSE filing, cite a figure of Rs 1,640 crore (excluding taxes). This discrepancy may reflect differences in accounting for taxes or additional costs, but it does not detract from the deal’s significance. The radars, referred to as “Atulya” in some reports, represent a cutting-edge addition to India’s defence arsenal, reinforcing BEL’s role as a leading defence electronics manufacturer.

Strategic Context and Future Implications

The procurement comes at a time when India is intensifying its focus on air defence modernization, driven by evolving regional security challenges. The ADFCRs will enhance the Army’s ability to counter aerial threats at short and very short ranges, complementing other indigenous systems like the Akash missile. Earlier this month, the Defence Acquisition Council, chaired by Rajnath Singh, approved 10 proposals worth Rs 1.05 lakh crore for indigenous military hardware, signaling a broader push for self-reliance.

This deal follows another significant contract signed in March 2025 with BEL for Rs 2,906 crore to supply Ashwini Low-Level Transportable Radars to the Indian Air Force, highlighting BEL’s growing order book, which now stands at Rs 17,030 crore for FY25. These developments underscore India’s strategic shift toward building a self-sufficient defence ecosystem capable of addressing both current and future threats.

Conclusion

The Rs 2,000 crore contract with BEL for Air Defence Fire Control Radars is a milestone in India’s journey toward Aatmanirbhar Bharat. By equipping the Indian Army with advanced, indigenously developed technology, the MoD is not only enhancing national security but also fostering economic growth through MSME participation and job creation. As India continues to expand its defence production and export capabilities, deals like this one with BEL pave the way for a stronger, more self-reliant defence sector.

Stay tuned for more updates on India’s defence modernization efforts, and share your thoughts on how indigenous manufacturing is shaping the nation’s security landscape in the comments below!

Sources: Press Information Bureau, News18, The Economic Times, Free Press Journal, Bharat Shakti, Swarajya, The Statesman, Business Standard, The Week, Indian PSU