MoD Signs ₹4,106 Crore Defence Contracts for GSAT-7C Satellite and Varunastra Torpedoes

India’s Ministry of Defence has signed contracts worth ₹4,106 crore for the GSAT-7C communication satellite and Varunastra torpedoes, strengthening indigenous defence technology and manufacturing capabilities.

Ministry of Defence Signs Contracts Worth ₹4,106 Crore

The Ministry of Defence (MoD) has signed two major defence procurement contracts worth approximately ₹4,106 crore (US$431.98 million) to strengthen the operational capabilities of the Indian Air Force (IAF) and the Indian Navy.

The agreements cover the acquisition of the GSAT-7C communication satellite for the Air Force and Varunastra Heavy Weight Torpedoes for the Navy. Both 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 acquisitions are aimed at improving secure military communications and strengthening anti-submarine warfare capabilities. They also support the government’s efforts to expand domestic defence manufacturing and reduce dependence on foreign technologies.

GSAT-7C Satellite Contract Worth ₹2,563 Crore

Agreement Signed with New Space India Limited

The Ministry of Defence signed a contract worth ₹2,563 crore (US$269.65 million) with New Space India Limited (NSIL), Bengaluru, for the GSAT-7C communication satellite.

The satellite has been indigenously designed, developed and manufactured. Its acquisition is intended to enhance the Indian Air Force’s dedicated satellite communication infrastructure and improve connectivity among its operational assets.

Strengthening Secure Military Communications

Reliable communication is essential for coordinating military operations, exchanging information and maintaining situational awareness. The GSAT-7C satellite is expected to provide secure, resilient and seamless communication capabilities for the Indian Air Force.

Strengthening dedicated satellite-based communication infrastructure can support operational coordination and improve the ability of defence assets to communicate effectively.

The contract also represents an investment in India’s domestic capabilities in advanced space systems and military communication technologies, supporting the development of indigenous solutions for national security requirements.

Varunastra Heavy Weight Torpedoes Contract Worth ₹1,543 Crore

Bharat Dynamics Limited to Supply the Torpedoes

The second agreement, valued at ₹1,543 crore (US$162.34 million), was signed with Bharat Dynamics Limited (BDL), Hyderabad, for Varunastra Heavy Weight Torpedoes.

Varunastra is an indigenous naval weapon developed by the Naval Science and Technological Laboratory (NSTL). Designed as a ship-launched anti-submarine torpedo, it incorporates advanced manoeuvring capabilities to engage enemy submarines at long ranges.

The procurement will strengthen the Indian Navy’s inventory of domestically developed underwater warfare systems.

Enhancing the Indian Navy’s Anti-Submarine Warfare Capabilities

Anti-submarine warfare plays an important role in protecting naval vessels and maintaining security in maritime areas. Advanced torpedoes provide naval forces with capabilities to detect, track and engage underwater threats as part of broader operational missions.

The induction of Varunastra Heavy Weight Torpedoes is expected to enhance the Indian Navy’s ability to counter hostile submarines. The programme also demonstrates the contribution of Indian defence research institutions and manufacturers to developing advanced naval technologies.

Indigenous Defence Manufacturing Gets a Boost

The two contracts highlight the government’s continued focus on developing critical defence systems within India. By procuring domestically designed and manufactured technologies, the Ministry of Defence aims to strengthen the country’s industrial capabilities and support the growth of its defence manufacturing ecosystem.

New Space India Limited’s role in the satellite programme and Bharat Dynamics Limited’s involvement in the torpedo contract underline the importance of Indian public-sector enterprises in supplying specialised defence equipment.

Such projects can also support domestic technical expertise, manufacturing capabilities and the development of advanced systems for the armed forces.

Supporting Aatmanirbhar Bharat and Make in India

The procurement agreements align with the government’s Aatmanirbhar Bharat and Make in India initiatives, which seek to promote self-reliance across strategically important sectors.

Indigenous development of military communication satellites and naval weapons can help expand domestic expertise in space technology, electronics, engineering and defence production.

Building these capabilities is important for improving supply-chain resilience and strengthening India’s ability to meet its defence requirements. Continued investment in research, development and domestic manufacturing can also encourage innovation and support the wider defence industrial base.

Conclusion

The ₹4,106 crore contracts for the GSAT-7C communication satellite and Varunastra Heavy Weight Torpedoes mark an important step in strengthening India’s military capabilities and domestic defence industry. The satellite will support secure communications for the Indian Air Force, while the torpedoes will enhance the Navy’s anti-submarine warfare capabilities. By advancing indigenous technologies and manufacturing, the acquisitions reinforce India’s commitment to Aatmanirbhar Bharat and greater self-reliance in critical defence systems.