Defence ministry inks ₹2,960-crore missiles deal with Bharat Dynamics; shares surge 6%

The defence ministry on Thursday signed a ₹2,960-crore contract with Bharat Dynamics Limited (BDL) for the supply of Medium-Range Surface-to-Air Missiles (MRSAM) for the Indian Navy.

The agreement, sealed in the presence of defence secretary Rajesh Kumar Singh, will further boost India's ongoing efforts to bolster its defence capabilities and indigenise advanced military technology.

The MRSAM system, a standard fit for multiple Indian Naval ships, is planned to be fitted in future naval platforms under acquisition, according to defence ministry.

The missiles will be supplied by BDL under the ‘Buy (Indian)’ category with largely indigenous content.

The deal is expected to generate approximately 3.5 lakh man-days of employment in the defence sector, benefiting micro, small, and medium enterprises (MSMEs) involved in the supply chain, a government release said.

The deal also triggered a positive response in the stock market, with BDL shares surging over 6% to trade at ₹1,211 during afternoon trading on Thursday.

The latest defence deal was signed nearly a month after Larsen & Toubro (L&T) bagged ₹7,628.70-crore contract from the government for the procurement of 155mm/52 calibre K9 Vajra-T self-propelled tracked artillery guns.

Manufactured by L&T with technology transfer from South Korean firm Hanwha Techwin, the additional K9 Vajra-T guns are expected to enhance the operational readiness of the Army.