Ministry of Defence greenlights Rs 7,629-crore deal with L&T for 100 K9 Vajra artillery
- In Reports
- 07:07 PM, Dec 21, 2024
- Myind Staff
On Friday, the Ministry of Defence (MoD) signed a contract worth Rs 7,628.70 crore with Larsen & Toubro Limited (L&T) to supply 100 more K9 Vajra-T self-propelled tracked artillery guns, each with a 155 mm/52 calibre, for the Indian Army.
An MoD release announcing the contract said that it fits under the "Buy (Indian) category," further supporting the Centre's "Aatmanirbhar Bharat" (self-reliant India) strategy. The MoD claimed that the acquisition of the most recent K9 Vajra-T guns would "enhance the Indian Army's overall operational readiness" and "catalyse artillery modernisation." The initial order for 100 weapons has already been completed, and the firearms will be produced under license from the South Korean defence company Hanwha Defence.
On Friday, senior officials from the Ministry of Defence (MoD) and representatives from L&T signed a contract in the presence of Defence Secretary Rajesh Kumar Singh at South Block in New Delhi. Although the MoD release did not mention the exact number of guns being procured, sources confirmed that the contract covers five regiments, which equals 100 units of K9 Vajra artillery guns. With its cross-country mobility, the K9 Vajra is a "versatile artillery gun" that will improve the Army's firepower, allow for more precision strikes and strengthen artillery capabilities in all terrains, according to the MoD.
The MoD stated, "The gun, equipped with cutting-edge technology, can deliver long-range lethal fire with high accuracy and a higher rate of fire and will be able to operate at sub-zero temperatures in high-altitude areas to its full potential."
A self-propelled tracked artillery gun is an armoured weapon system that moves on tracks and is capable of firing large-calibre shells across various terrains. In February 2021, L&T completed the delivery of its 100th K9 Vajra self-propelled howitzer from its Armoured System Complex in Hazira, Gujarat, finishing all deliveries under a previous Ministry of Defence (MoD) contract ahead of schedule. The contract, worth around Rs 4,500 crore and awarded in May 2017, was the largest-ever contract given to an Indian private company through global competitive bidding at that time.
L&T, as the main contractor, partnered with Hanwha Defense, the original manufacturer of the K9 Thunder, to produce the K9 Vajra. The project included delivering 100 howitzers, along with an engineering support package that consisted of spares, documentation, training and technology transfer to an Army base workshop for long-term maintenance and support.
The initial ten K9 Vajra units were constructed by L&T in India after being imported from Hanwha in a semi-knocked-down configuration. With a few key assemblies coming from South Korea, the remaining 90 units were mostly produced domestically. At its Hazira complex, L&T set up a greenfield production, integration and testing facility to support the program and the "Make-in-India" effort. According to the MoD, the project associated with Friday's contract will create over 900,000 man-days of employment over four years and promote active involvement from a range of Indian industries, including micro, small, and medium-sized businesses (MSMEs). The project would proudly fly the "Aatmanirbhar Bharat" flag in accordance with the "Make-in-India" campaign, it further stated.
The additional firearms are being purchased under the "Buy (Indian) category" outlined in the Defence Acquisition Procedure 2020. This category covers the purchase of goods from Indian suppliers that may not be designed and developed domestically but must contain at least 60% indigenous content based on the base contract price. The contract with L&T supports the ongoing efforts for self-reliance in defence. A report by the Parliamentary Standing Committee on Defence, released on Tuesday, states that a total of 333 contracts for acquiring defence equipment for the Army were signed during the last five financial years (FY20 to FY24) and FY25 (up to September 2024). Out of these, 278 contracts, which make up about 88% of the total contract value, were signed with Indian vendors for capital procurement.
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