Defence Ministry Inks Rs 5,300 Crore Deal with BEL

• 18 Dec 2023

On 15^th Dec, the Defence Ministry finalized a Rs 5,300 crore deal with Bharat Electronics Ltd (BEL) for the procurement of electronic fuzes for the Indian Army, spanning a 10-year period.

Key Points

• Critical Component: Electronic fuzes play a crucial role in sustaining artillery firepower for military operations, particularly in medium to heavy calibre artillery guns.
• Operational Scope: The fuzes are intended for usage in artillery guns capable of lethal engagements across various terrains, including high-altitude areas along the northern borders.
• Ammunition Stock Build-Up: The project's primary objective is to augment ammunition stocks, emphasizing a reduction in dependence on imports and fostering self-sufficiency.
• 'Aatmanirbhar Bharat' Vision: Aligned with the 'Aatmanirbhar Bharat' vision, the contract is a step towards ammunition procurement under the 'manufacture of ammunition for the Indian Army by Indian industry' initiative, addressing long-term requirements over a decade.
• Self-Sufficiency Goals: The project aims to attain self-sufficiency in ammunition manufacturing, acquire critical technologies, and secure stocks to mitigate supply chain disruptions.
• Manufacturing Locations: BEL will manufacture the electronic fuzes at its Pune facility and the upcoming Nagpur Plant, contributing to the growth of the ammunition manufacturing ecosystem.
• Employment and Industry Participation: The project is anticipated to generate employment for one-and-a-half lakh man-days and encourages active involvement from Indian industries, including MSMEs, in the ammunition manufacturing sector.