On March 28, 2025, the Ministry of Defence (MoD) signed two major contracts with Hindustan Aeronautics Limited (HAL) worth Rs 62,700 crore, aimed at enhancing the combat capabilities of India’s armed forces. These contracts, covering the delivery of 156 Light Combat Helicopters (LCH) Prachand, will strengthen the operational readiness of the Indian Air Force (IAF) and the Indian Army.
The first agreement is for the supply of 66 LCHs to the IAF, while the second covers the delivery of 90 LCHs to the Indian Army. The helicopters, designed to operate at altitudes over 5,000 meters, will begin to be delivered in the third year of the contract, with the full supply expected to be completed over the next five years.
The LCH is India’s first indigenously designed and developed combat helicopter, tailored for operations in challenging high-altitude terrain. With over 65% of its components designed and manufactured in India, the LCH project will involve more than 250 domestic companies, predominantly MSMEs, contributing to its production. This collaboration is expected to create more than 8,500 direct and indirect job opportunities across the country.
The contracts are a significant milestone in India’s defence modernization, as they reinforce the government’s focus on self-reliance under the “Atmanirbhar Bharat” initiative. The helicopters will provide a strategic advantage for the armed forces, particularly in the mountainous and high-altitude regions, which require specialized equipment for effective combat and surveillance.
In another significant development, the MoD has also finalized a deal with Metrea Management for the wet leasing of a Flight Refuelling Aircraft (FRA), the KC-135. This aircraft will be used to provide air-to-air refuelling training for pilots from both the IAF and Indian Navy. The contract will see the aircraft arrive within six months, marking the first time the IAF will employ a wet-leased FRA.
With these three contracts, the total value of deals signed by the Ministry of Defence in the 2024-25 financial year has now reached a record Rs 2,09,050 crore. This total is nearly double the previous highest figure, underscoring the government’s continued investment in bolstering India’s defence capabilities. Out of these contracts, 92% (177 contracts) are with domestic industries, amounting to Rs 1,68,922 crore, or 81% of the total contract value. The agreements represent a significant leap forward in India’s defence procurement strategy, prioritizing both indigenous production and strategic partnerships with the private sector.
