Army awards ₹1,577-crore loiter munition contracts to TASL, NIBE
The Ministry of Defence on Friday signed contracts worth ₹1,577 crore with Tata Advanced Systems Ltd (TASL) and NIBE Ltd for the supply of loiter munition systems to the Indian Army. The deals, signed in New Delhi in the presence of Defence Secretary Rajesh Kumar Singh, cover 84 loiter munition systems, 840 loiter munitions and associated accessories.
The contracts have been processed under the 'Buy Indian' category through the Fast Track Procedure, a route often used to address urgent capability gaps. The procurement mandates an overall indigenous content of 60%, including a minimum of 50% indigenous content in materials, components and software.
TASL, the lowest bidder, will supply 54 loiter munition systems and 540 munitions at a cost of ₹1,013.77 crore. NIBE, the second-lowest bidder, will provide 30 systems and 300 munitions for ₹563.36 crore.
Loiter munitions are unmanned aerial vehicles that can remain in an area for a prolonged period and strike a target when directed. The systems being procured have a range of up to 100 km, designed to bridge a gap in the Army's precision-strike capability. At present, the Army's long-range precision-strike capability beyond 40-50 km is largely dependent on BrahMos supersonic cruise missiles.
According to the Ministry, the acquisition will enhance the operational effectiveness of Artillery Regiments. A limited number of artillery regiments and batteries have already been operationalised with loiter munition systems under Phase-I, and more units are expected to be equipped under the latest procurement.
The equipment is scheduled to be delivered within 12 months from the date of advance payment. The Ministry said the deals will provide a major boost to indigenous defence manufacturing and the government's Aatmanirbhar Bharat initiative, which aims to strengthen India's self-reliance in defence production.
Defence analysts note that loiter munitions offer a cost-effective alternative to cruise missiles for time-sensitive targets, allowing precise strikes while keeping personnel out of immediate danger. The new systems will give artillery units greater flexibility and responsiveness in frontline operations.
The contracts mark another step in the Army's ongoing modernisation efforts, with a growing focus on indigenously developed and manufactured weapon systems. The 'Buy Indian' category is part of a broader policy push to encourage domestic industry and reduce dependence on foreign arms imports.
