MoD Signs Defence Contracts for 156 LCH Helicopters and FRA Leasing

The deal, valued at Rs. 62,700 crore (excluding taxes), underscores India’s commitment to indigenization and self-reliance in defence manufacturing.

In a major boost to India's defence capabilities, the Ministry of Defence (MoD) has signed two contracts with Hindustan Aeronautics Limited (HAL) for the procurement of 156 Light Combat Helicopters (LCH), Prachand, along with training and associated equipment. The deal, valued at Rs. 62,700 crore (excluding taxes), underscores India’s commitment to indigenization and self-reliance in defence manufacturing.

Details of the Contracts

The contracts comprise two separate agreements:

1. Indian Air Force (IAF): The first contract is for the supply of 66 LCHs to bolster the IAF's combat readiness and operational efficiency.

2. Indian Army: The second contract includes the procurement of 90 LCHs to enhance the Army's aerial firepower, particularly in high-altitude terrains.

The delivery of these helicopters will commence in the third year from the signing date and will continue for five years. These helicopters are designed to reinforce the combat capability of the Indian Armed Forces, particularly in mountainous and high-altitude environments, a critical necessity given India's strategic defense requirements.

Significance of LCH Prachand

LCH Prachand is India's first indigenously designed and developed combat helicopter capable of operating at altitudes over 5,000 meters. It has been developed with a focus on supporting operations in difficult terrains such as Ladakh and the northeastern borders. The twin-engine attack helicopter is equipped with advanced weaponry, sensors, and night-fighting capabilities, making it an essential asset for counterinsurgency, anti-tank warfare, and high-altitude combat.

This deal is also a major step towards achieving self-reliance in defence manufacturing under the ‘Make in India’ initiative. More than 65% of the helicopter’s components are domestically designed and manufactured. The procurement process will involve over 250 domestic companies, with a major chunk of participation from Micro, Small, and Medium Enterprises (MSMEs). This initiative is expected to generate over 8,500 direct and indirect jobs, contributing significantly to India’s defence industry and economic growth.

Wet Leasing of Flight Refuelling Aircraft (FRA)

Apart from the LCH deal, the Ministry of Defence has also signed a contract with Metrea Management for the wet leasing of one Flight Refuelling Aircraft (FRA). The FRA, a KC-135 aircraft, will provide Air-to-Air refuelling training to pilots of the IAF and the Indian Navy. The aircraft will be delivered within six months, marking the first instance of an FRA being wet-leased by the Indian Air Force.

The leasing of the FRA is expected to significantly enhance the aerial refuelling capabilities of the Indian Armed Forces, improving operational efficiency and extending the range of fighter aircraft during missions.

India’s Record Defence Contracts in 2024-25

With the signing of these three contracts, the total number of agreements inked by the Ministry of Defence during the fiscal year 2024-25 has reached 193, with an overall contract value exceeding Rs. 2,09,050 crore. This marks the highest-ever defence procurement value in India’s history, nearly doubling the previous record.

Out of these 193 contracts, 92% (177 contracts) have been awarded to domestic defence manufacturers, amounting to Rs. 1,68,922 crore (81% of the total value). This reflects India’s increasing emphasis on indigenous production and reducing dependency on foreign imports for defence equipment.

Future Prospects and Strategic Implications

These latest contracts reinforce India’s commitment to modernizing its armed forces and boosting indigenous defence production. The LCH Prachand will significantly enhance the country’s aerial combat strength, particularly in challenging high-altitude environments, and the FRA leasing will improve operational flexibility for extended-range missions.

With a sustained push towards domestic manufacturing, these developments align with India's long-term strategic vision of achieving self-sufficiency in defence and strengthening its military preparedness for future challenges. The Ministry of Defence’s record-breaking procurement spree underscores a decisive shift towards bolstering national security while fostering domestic defence innovation and industry growth.

Conclusion

The signing of these historic contracts marks a significant milestone in India's defence modernization journey. The induction of LCH Prachand and FRA into the armed forces will not only improve operational efficiency but also solidify India's position as a leading force in the global defence sector. The move will further strengthen India's capability to counter emerging threats and maintain aerial dominance in the region.