Defence ministry inks ₹6,900 cr deal with Bharat Forge, Tata Advanced Systems for ATAGS, high-mobility vehicles

The Ministry of Defence (MoD) on Wednesday signed contracts worth ₹6,900 crore with Bharat Forge Limited and Tata Advanced Systems Limited for the procurement of 155mm/52 calibre Advanced Towed Artillery Gun Systems (ATAGS) and High Mobility Vehicle 6x6 Gun Towing Vehicles.

The agreements were signed in the presence of Defence Secretary Rajesh Kumar Singh in the national capital.

With this, total capital procurement contracts worth ₹1.40 lakh crore have been signed by the defence ministry in the ongoing financial year 2024-25.

The ATAGS, known for its exceptional lethality, will replace older, lower-calibre artillery guns in the Indian Army’s inventory, the defence ministry said in a statement.

“The procurement of this gun system marks a significant milestone in the modernisation of the Artillery Regiments, enhancing operational readiness,” the statement read.

The procurement marks the first major acquisition of towed artillery from the private sector, providing a boost to domestic gun manufacturing under the ‘Aatmanirbhar Bharat’ initiative.

It is also expected to generate employment and contribute to economic growth under the Make-in-India framework.

Earlier in the day, state-owned Bharat Dynamics Ltd (BDL) inked a ₹4,362.23 crore deal with the defence ministry for the supply of armaments to the armed forces, according to a regulatory filing.

Shares of BDL were trading 1.58% higher at ₹1,336.25 apiece on the NSE at 2:20 pm, having touched an intraday high of ₹1,357.70, up 3.20%.

Last week, the Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, approved eight capital acquisition proposals worth over ₹54,000 crore, while also introducing guidelines to expedite the procurement process.

The approvals include the procurement of 1,350 horsepower engines for T-90 tanks, Varunastra torpedoes, and Airborne Early Warning and Control (AEW&C) aircraft systems.