Ministry of Defence Signs ₹4,106 Crore Contracts for GSAT-7C Satellite and Varunastra Torpedoes

The Ministry of Defence signed two major defence acquisition contracts worth approximately ₹4,106 crore on October 15, 2026, to strengthen the operational capabilities of the Indian Air Force and Indian Navy. The agreements cover the acquisition of the indigenous GSAT-7C communication satellite and Varunastra heavyweight torpedoes, reinforcing India’s efforts to develop advanced military technologies through domestic defence manufacturing.

The contracts were signed in New Delhi in the presence of A. Anbarasu, Additional Secretary and Director General (Acquisition), Department of Defence. The agreements involve New Space India Limited (NSIL), Bengaluru, and Bharat Dynamics Limited (BDL), Hyderabad, highlighting the important role of Indian public sector enterprises in strengthening national defence capabilities.

₹2,563 Crore GSAT-7C Satellite to Strengthen Indian Air Force Communications

The Ministry of Defence signed a ₹2,563 crore contract with New Space India Limited for the acquisition of GSAT-7C, a dedicated military communication satellite for the Indian Air Force. The satellite will be designed, developed and manufactured indigenously, strengthening India’s capabilities in secure space-based military communications.

GSAT-7C will enhance secure, resilient and seamless communication capabilities for Indian Air Force assets, supporting improved operational coordination and communication reliability. Dedicated satellite communication infrastructure is particularly important for modern military operations, where aircraft, ground installations and command centres require dependable information exchange across geographically dispersed operational areas.

The acquisition will strengthen the Indian Air Force’s communication infrastructure while advancing India’s indigenous satellite development and manufacturing ecosystem. NSIL, the commercial arm of the Indian Space Research Organisation (ISRO), will play a central role in delivering this strategic communication capability.

₹1,543 Crore Varunastra Torpedo Contract Boosts Indian Navy’s Anti-Submarine Warfare

The Ministry of Defence also signed a ₹1,543 crore contract with Bharat Dynamics Limited for the acquisition of Varunastra heavyweight torpedoes for the Indian Navy. Varunastra is an indigenous, ship-launched anti-submarine torpedo developed by the Naval Science and Technological Laboratory (NSTL), a laboratory of the Defence Research and Development Organisation (DRDO).

Designed to engage hostile submarines at extended ranges, Varunastra incorporates advanced manoeuvring capabilities to improve underwater target engagement. The heavyweight torpedo strengthens the Indian Navy’s ability to detect and counter underwater threats as part of its broader anti-submarine warfare operations.

The contract will support the continued production of indigenous underwater weapon systems through Bharat Dynamics Limited, strengthening India’s defence manufacturing capabilities in advanced naval armaments. The acquisition also reflects the growing contribution of DRDO-developed technologies to operational weapon systems deployed by the Indian Armed Forces.

Indigenous Defence Technologies Strengthen India’s Military Capabilities

The two contracts represent investments in critical defence capabilities spanning space-based communications and underwater warfare. While GSAT-7C will strengthen the Indian Air Force’s secure communication infrastructure, Varunastra will enhance the Indian Navy’s ability to engage hostile submarines using an indigenously developed weapon system.

The Ministry of Defence stated that both agreements support the government’s Aatmanirbhar Bharat and Make in India initiatives, which seek to expand domestic defence manufacturing and reduce dependence on imported military technologies.

The ₹4,106 crore acquisition programme further strengthens cooperation between the Armed Forces, defence research establishments and Indian public sector enterprises. By investing in indigenous satellite communication systems and advanced naval weapons, India continues to expand its technological capabilities while building a stronger and more self-reliant defence industrial ecosystem.

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References

1. Press Information Bureau, Ministry of Defence, Government of India. MoD Inks Rs 4,106 Crore Contracts for GSAT-7C Communication Satellite and Varunastra Heavy Weight Torpedoes. October 15, 2026.https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2323814
2. New Space India Limited (NSIL), Department of Space, Government of India. Official website.https://www.nsilindia.co.in/
3. Bharat Dynamics Limited (BDL), Ministry of Defence, Government of India. Official website.https://bdl-india.in/
4. Defence Research and Development Organisation (DRDO), Ministry of Defence. Official information on indigenous torpedo development and underwater weapon technologies.https://www.drdo.gov.in/

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