NIBE Secures ₹563-Crore Indian Army Contract for 300 Loitering Munitions

Indian defence manufacturer NIBE has secured a ₹563.35-crore contract from the Indian Army for the manufacture and supply of loiter munition systems. The order strengthens the Army’s precision-strike capabilities while adding momentum to India’s push for indigenous defence production.

The contract covers 30 sets of loiter munition systems comprising 300 loitering munitions, along with associated testing equipment and accessories. The procurement falls under the Buy (Indian) category.

The ₹563.35-crore contract value includes applicable taxes and duties. NIBE is required to complete deliveries in tranches within 12 months from the release of the advance payment following the signing of the contract.

Part of ₹1,577-Crore Army Loitering Munition Procurement

The Ministry of Defence has officially confirmed a wider procurement programme involving NIBE and Tata Advanced Systems Limited (TASL).

On August 14, 2026, the Ministry signed contracts with the two companies for Loiter Munition Systems, munitions and associated equipment. The combined value of the contracts is approximately ₹1,577 crore. The agreements were signed in New Delhi in the presence of Defence Secretary Rajesh Kumar Singh.

The Ministry said the systems are being acquired for the Indian Army’s Artillery Regiments. They are intended to improve operational effectiveness by providing artillery units with modern precision-strike capabilities.

The procurement is being undertaken through the Fast Track Procedure under the Buy (Indian) category, reinforcing the government’s emphasis on domestic defence manufacturing and quicker induction of operational capabilities.

300 Loitering Munitions for Indian Army

Unlike conventional artillery ammunition, loitering munitions combine surveillance, target acquisition and precision-strike functions in a single unmanned platform. They can remain airborne while searching for or tracking a target before conducting an attack.

The new procurement will therefore give Army formations another precision-strike option alongside conventional artillery, missiles and other unmanned systems.

For NIBE, the order represents a major expansion of its role in India’s emerging unmanned and precision-weapons ecosystem. The company’s defence portfolio already includes the VayuAstra series of loitering munitions and other land-based weapon systems.

NIBE had earlier announced successful technical trials of a 100-km-range loitering munition against an Indian Army requirement at Pokhran and Joshimath in May 2026. The company’s official investor-relations records confirm that announcement.

Contract Includes Performance Guarantees

Under the terms disclosed by NIBE, the company must provide a Performance-cum-Warranty Bank Guarantee equal to 10 per cent of the total contract price within 45 days of signing the agreement.

The company will also have to provide the stipulated performance guarantee relating to the annual maintenance contract.

The 12-month delivery schedule indicates that the Army intends to induct the systems on a relatively rapid timeline.

Boost for Indigenous Precision-Strike Capability

The procurement comes as the Indian Army expands the use of unmanned systems across surveillance, reconnaissance and precision-strike missions.

The Ministry of Defence described the ₹1,577-crore acquisition as an important step towards modernising the Army while strengthening India’s domestic defence industrial base. It said procurement from Indian industry would support the broader Aatmanirbhar Bharat programme in defence manufacturing.

With 300 loitering munitions covered under NIBE’s portion of the programme, the contract represents a significant addition to the Army’s indigenous precision-strike inventory and provides Indian industry with another major opportunity to manufacture advanced battlefield systems at scale.

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Sources

1. Ministry of Defence / Press Information Bureau — August 14, 2026:
“Aatmanirbhar Bharat: MoD inks Rs 1,577 crore contracts for Loiter Munition Systems for Indian Army” — confirms the contracts with Tata Advanced Systems Limited and NIBE, the ₹1,577-crore combined value, Buy (Indian) classification, Fast Track Procedure and intended use by Army Artillery Regiments.

2. NIBE Limited — Official Investor Relations / Stock Exchange Disclosures:
NIBE’s official investor portal hosts its statutory disclosures and announcements to the stock exchanges, including its defence-contract and Army-related filings.

Verification note: The Ministry of Defence’s PIB release independently confirms the broader ₹1,577-crore procurement involving Tata Advanced Systems and NIBE. The specific ₹563.35-crore value, 30 systems and 300 munitions are from NIBE’s contract disclosure.

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