In a significant boost to India’s maritime defence capabilities, the Ministry of Defence signed defence contracts worth ₹5,083 crore on March 3, 2026 for the acquisition of six Advanced Light Helicopters (ALH) Mk-III (Maritime Role) for the Indian Coast Guard and the procurement of Vertical Launch Surface-to-Air Shtil missile systems for the Indian Navy. The agreements were signed at South Block, New Delhi, in the presence of Defence Secretary Rajesh Kumar Singh.
ALH Mk-III (Maritime Role): Strengthening Coastal Surveillance
A major portion of the deal, valued at ₹2,901 crore, has been awarded to Hindustan Aeronautics Limited for the supply of six ALH Mk-III (MR) helicopters. The procurement has been approved under the Buy (Indian-Indigenously Designed, Developed and Manufactured) category, highlighting the government’s emphasis on domestic defence production.
The twin-engine ALH Mk-III (MR) helicopters are equipped with advanced avionics and mission systems designed specifically for maritime operations. These platforms will enable the Coast Guard to conduct a wide range of missions including coastal surveillance, search and rescue, maritime law enforcement, and protection of offshore assets such as artificial islands and energy installations. They can operate both from shore-based airfields and from naval vessels at sea, providing greater operational flexibility.
The project is also expected to have significant economic impact. More than 200 Micro, Small and Medium Enterprises (MSMEs) will participate in the supply chain, generating nearly 65 lakh man-hours of employment. The contract aligns with India’s broader push for self-reliance in defence manufacturing under the Aatmanirbhar Bharat and Make-in-India initiatives.
VL-Shtil Missiles for Indian Navy
The second contract, valued at ₹2,182 crore, involves the procurement of Vertical Launch Surface-to-Air Shtil missile systems from JSC Rosoboronexport of the Russia. These missile systems will be deployed on frontline warships of the Indian Navy to strengthen their capability to counter aerial threats.
The VL-Shtil system is designed to intercept and destroy a variety of airborne targets including aircraft, drones, and anti-ship missiles. Its vertical launch capability allows missiles to be fired in any direction almost instantly, enabling rapid engagement of incoming threats and improving the survivability of naval platforms in hostile environments.
Importance of Layered Air Defence at Sea
Modern naval warfare increasingly revolves around the ability to detect and neutralize incoming threats before they reach a ship. This is achieved through what is known as layered air defence, a multi-tier system in which different weapons engage threats at varying ranges. Long-range missiles detect and intercept targets far from the fleet, medium-range systems engage threats that penetrate the outer layer, while close-in weapon systems serve as the final shield against incoming missiles or aircraft.
The integration of systems such as the VL-Shtil strengthens the Indian Navy’s layered defensive architecture by providing a rapid-reaction, all-weather missile shield for frontline warships. When combined with ship-borne radars, electronic warfare systems, and other missile platforms, it ensures that hostile aircraft or anti-ship missiles face multiple interception barriers before reaching their target.
Strategic Implications
The contracts reflect India’s dual approach to defence modernisation: strengthening indigenous manufacturing while continuing strategic partnerships with trusted international suppliers. While the ALH Mk-III deal reinforces domestic aerospace capability through HAL and its MSME ecosystem, the VL-Shtil procurement underscores the long-standing defence cooperation between India and Russia.
Together, these acquisitions will significantly enhance India’s maritime surveillance, rescue operations, and naval air defence capability—an increasingly vital requirement in the strategically sensitive waters of the Indian Ocean region.
Source: PIB
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