The Ministry of Defence has approved two major defence acquisition contracts totalling approximately Rs 4,106 crore on 15 October 2026. The contracts cover the supply of a dedicated communication satellite for the Indian Air Force and advanced anti-submarine torpedoes for the Indian Navy, both manufactured in India.
Key facts
- Total contract value: Rs 4,106 crore
- GSAT-7C satellite contract: Rs 2,563 crore with New Space India Limited, Bengaluru
- Varunastra torpedo contract: Rs 1,543 crore with Bharat Dynamics Limited, Hyderabad
- Contracts signed on 15 October 2026 in New Delhi
- Signed in presence of A Anbarasu, Additional Secretary and Director General (Acquisition), Department of Defence
GSAT-7C satellite for the Indian Air Force
The Indian Air Force will receive a new satellite communication system developed and manufactured entirely within India. GSAT-7C is designed to provide secure, reliable and seamless communication links for Indian Air Force assets across their operational areas. The satellite will strengthen the ability of the Air Force to coordinate and control its operations more effectively by ensuring uninterrupted communication channels even in challenging environments.
New Space India Limited, a public sector company under the Department of Space, will deliver this satellite system. The Rs 2,563 crore contract represents a significant investment in indigenous space-based military capability, reducing dependence on foreign suppliers for critical communication infrastructure.
Varunastra torpedo for the Indian Navy
The Indian Navy will acquire Varunastra, a heavyweight anti-submarine torpedo that can be launched from naval vessels. Developed by the Naval Science and Technological Laboratory, this indigenously designed weapon is intended to enhance the Navy’s capability to detect, track and neutralise enemy submarines during underwater warfare operations.
The torpedo is equipped with advanced maneuvering systems that allow it to engage submarines at considerable distances, providing the Navy with an extended reach in anti-submarine defence. Bharat Dynamics Limited, a defence public sector undertaking based in Hyderabad, will manufacture and supply these torpedoes under the Rs 1,543 crore contract.
Link to Make in India and self-reliance
Both contracts represent the Government’s commitment to developing defence manufacturing capabilities within India rather than importing similar systems from other countries. This approach, aligned with the Aatmanirbhar Bharat (Self-Reliant India) initiative and the Make in India programme, aims to reduce foreign dependency in defence procurement while creating manufacturing expertise and employment within the country.
By contracting with domestic companies to produce both satellite and torpedo systems, the Ministry of Defence supports the growth of India’s indigenous defence industry and ensures that critical military technologies remain under national control.
What this means for you
These contracts represent a larger shift in how India builds its defence capabilities. Citizens and taxpayers benefit through investment in domestic manufacturing rather than foreign purchases, which typically involve technology restrictions and higher long-term costs. The development of indigenous systems also strengthens national security by reducing reliance on external suppliers who may face geopolitical pressures or supply disruptions.
For those working in defence manufacturing, space technology and related sectors, these contracts signal growing opportunities in India’s defence industrial base. The contracts also demonstrate to defence researchers and engineers that there is sustained government commitment to developing and procuring domestically built military systems.