New Delhi, October 15, 2026: Defence Contracts 2026 worth approximately ₹4,106 crore have been signed by the Ministry of Defence (MoD) for the acquisition of the GSAT-7C communication satellite for the Indian Air Force and Varunastra Heavy Weight Torpedoes for the Indian Navy. The agreements aim to strengthen secure military communications and enhance India’s anti-submarine warfare capabilities while supporting domestic defence manufacturing.
The contracts were signed in New Delhi on October 15, 2026, in the presence of Additional Secretary and Director General (Acquisition), Department of Defence, A. Anbarasu. The two agreements cover critical technologies for the Indian Air Force and Indian Navy.
Defence Contracts 2026 Include ₹2,563 Crore GSAT-7C Satellite Deal
The Ministry of Defence signed a contract worth ₹2,563 crore with NewSpace India Limited (NSIL), Bengaluru, for the GSAT-7C communication satellite.
The satellite has been indigenously designed, developed and manufactured. According to the Ministry of Defence, it will enhance secure, resilient and seamless communication capabilities for the Indian Air Force’s assets, strengthening communication support for its operations.
Secure and reliable communication is an important requirement for coordinating military assets and supporting operational activities. The GSAT-7C contract is intended to provide the Indian Air Force with a dedicated satellite communication capability, reducing reliance on communication arrangements that may not meet all its specialised operational requirements.
The agreement also supports India’s efforts to develop and manufacture critical defence-related technologies domestically.
₹1,543 Crore Contract for Varunastra Heavy Weight Torpedoes
The second agreement, valued at ₹1,543 crore, was signed with Bharat Dynamics Limited (BDL), Hyderabad, for Varunastra Heavy Weight Torpedoes for the Indian Navy.
Varunastra is an indigenous, ship-launched anti-submarine torpedo developed by the Naval Science and Technological Laboratory (NSTL). It is designed to engage enemy submarines at long ranges and has advanced manoeuvring capabilities, according to the Ministry of Defence.
The acquisition is intended to enhance the Indian Navy’s anti-submarine warfare capability. Anti-submarine warfare involves detecting, tracking and responding to submarine threats, making specialised underwater weapons an important component of naval operations.
The contract with Bharat Dynamics Limited also supports the role of Indian defence manufacturers in supplying equipment for the armed forces.
GSAT-7C and Varunastra Deals Support Indigenous Defence Production
The combined value of the two contracts is approximately ₹4,106 crore. While the GSAT-7C agreement focuses on secure satellite communications for the Indian Air Force, the Varunastra contract is intended to strengthen the Indian Navy’s underwater warfare capabilities.
Both agreements contribute to the development and procurement of domestically produced defence technologies. The Ministry of Defence stated that the contracts represent a step towards strengthening India’s domestic defence manufacturing capabilities and self-reliance in critical technologies.
The agreements align with the government’s Aatmanirbhar Bharat and Make in India initiatives, which seek to increase domestic production and expand the role of Indian companies in meeting national requirements.
NewSpace India Limited and Bharat Dynamics Limited Receive Contracts
NewSpace India Limited, based in Bengaluru, is the company selected for the GSAT-7C communication satellite contract. Bharat Dynamics Limited, headquartered in Hyderabad, has received the contract for Varunastra Heavy Weight Torpedoes.
The two agreements cover separate operational requirements of India’s air and naval forces. The satellite is intended to support secure communications for the Indian Air Force, while the torpedoes will contribute to the Indian Navy’s anti-submarine warfare capability.
The Ministry of Defence signed both contracts on October 15, 2026, in New Delhi. The agreements underline the continuing role of indigenous design, development and manufacturing in supplying specialised equipment to India’s armed forces.
Source: Press Information Bureau (PIB), Ministry of Defence, Government of India.
