Army Contracts Worth ₹1,577 Crore Awarded for Loiter Munitions to TASL and NIBE
The Ministry of Defence has awarded contracts totaling ₹1,577 crore to TASL and NIBE for loiter munition systems. This acquisition aims to enhance the Indian Army's precision-strike capabilities up to 100 km.
Key takeaways
- The Ministry of Defence awarded contracts totaling ₹1,577 crore to TASL and NIBE for loiter munition systems.
- The deal includes 84 systems and 840 munitions, enhancing the Army's precision-strike capability up to 100 km.
- TASL secured a larger portion of the contract, supplying 54 systems and 540 munitions for ₹1,013.77 crore.
- NIBE will provide 30 systems and 300 munitions for ₹563.36 crore.
- The procurement mandates significant indigenous content and aims to boost domestic defense manufacturing.
The Ministry of Defence has finalized contracts valued at ₹1,577 crore with Tata Advanced Systems Ltd (TASL) and NIBE Private Limited. These agreements are for the acquisition of loiter munition systems for the Indian Army.
The deal encompasses the procurement of 84 loiter munition systems and 840 associated munitions. This acquisition is designed to augment the Army's precision-strike capacity for targets up to 100 kilometers away. The contracts were finalized on Friday, August 14, 2026, in New Delhi, with Defence Secretary Rajesh Kumar Singh in attendance.
Under the contracts, processed via the 'Buy Indian' category and Fast Track Procedure, there is a requirement for 60% overall indigenous content. This includes a minimum of 50% indigenous content in materials, components, and software.
Key Facts
- The Ministry of Defence signed contracts worth ₹1,577 crore with TASL and NIBE Ltd on August 14, 2026.
- The procurement includes 84 loiter munition systems and 840 munitions.
- These systems will enhance the Army’s precision-strike capability up to 100 km.
- TASL, the L-1 vendor, will supply 54 systems and 540 munitions for ₹1,013.77 crore.
- NIBE, the L-2 vendor, will supply 30 systems and 300 munitions for ₹563.36 crore.
- The contracts have 60% overall indigenous content, with a minimum of 50% indigenous content in materials, components, and software.
- Equipment delivery is scheduled within 12 months of advance payment.
Background
The Indian Army currently relies on BrahMos missiles for precision strikes beyond 40-50 km. Phase-I of equipping Artillery Regiments with loiter munition systems has already seen some units become operational. The current procurement aims to equip further units.
The Ministry stated that this acquisition will improve the operational effectiveness of Artillery Regiments and significantly boost indigenous defense manufacturing and the Aatmanirbhar Bharat initiative.
Sources reviewed
Project Chintan independently synthesized and analyzed information cross-checked across the sources listed above.
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