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New Delhi: The Ministry of Defence on Thursday signed contracts worth approximately Rs 4,106 crore for the Indian Air Force’s GSAT-7C communication satellite capability and the Indian Navy’s Varunastra Heavy Weight Torpedoes, in a move aimed at strengthening the operational capabilities of the armed forces and advancing indigenous defence manufacturing.
The contracts were signed in New Delhi on October 15, 2026, in the presence of A. Anbarasu, Additional Secretary and Director General (Acquisition), Department of Defence. The two agreements cover critical communication infrastructure for the Indian Air Force and advanced anti-submarine warfare capabilities for the Indian Navy.
The contract for GSAT-7C, valued at Rs 2,563 crore, was signed with NewSpace India Limited (NSIL), Bengaluru. The indigenously designed, developed and manufactured satellite capability is expected to enhance secure, resilient and seamless communication among the Indian Air Force’s assets, strengthening coordination and operational effectiveness.
Reliable and secure communication systems are crucial for the Air Force’s ability to coordinate operations across different platforms and operational environments. The GSAT-7C acquisition is intended to strengthen these capabilities while supporting the development and deployment of indigenous space-based defence technologies.
The second contract, worth Rs 1,543 crore, was signed with Bharat Dynamics Limited (BDL), Hyderabad, for the procurement of Varunastra Heavy Weight Torpedoes for the Indian Navy.
Varunastra is an indigenous, ship-launched anti-submarine torpedo developed by the Naval Science and Technological Laboratory. Equipped with advanced manoeuvring capabilities, the weapon can engage enemy submarines at long ranges, enhancing the Navy’s ability to detect, track and neutralise underwater threats.
The acquisition is expected to strengthen the Indian Navy’s anti-submarine warfare capabilities at a time when underwater surveillance and the ability to counter hostile submarine activity remain important components of maritime security.
Together, the two contracts represent investments in critical defence technologies spanning satellite-based communications and underwater warfare systems. They also underline the government’s focus on strengthening domestic manufacturing capabilities and reducing dependence on foreign suppliers for essential military equipment.
The Ministry of Defence said the agreements mark a significant step towards promoting self-reliance in critical technologies in line with the government’s Aatmanirbhar Bharat and Make in India initiatives.
The involvement of NSIL and Bharat Dynamics Limited also highlights the role of Indian defence and space-sector enterprises in developing and supplying equipment for the armed forces. The contracts are expected to support the domestic industrial ecosystem while strengthening the technological capabilities required for modern military operations.
With a combined value of approximately Rs 4,106 crore, the acquisitions address two distinct but strategically important requirements of the armed forces: secure communication for the Indian Air Force and enhanced anti-submarine warfare capabilities for the Indian Navy.