New Delhi, October 15, 2026 — The Ministry of Defence has finalised two contracts worth approximately ₹4,106 crore, covering a dedicated communication satellite capability for the Indian Air Force and Varunastra heavyweight torpedoes for the Indian Navy. The agreements were signed on Thursday in New Delhi in the presence of Shri A. Anbarasu, Additional Secretary and Director General (Acquisition), Department of Defence.
The deals are being projected as a further step in the government’s Aatmanirbhar Bharat and Make in India drive. According to the ministry, both procurements are meant to support indigenous capability in strategically important areas.
GSAT-7C contract for the Indian Air Force
One of the contracts is valued at ₹2,563 crore and has been awarded to NewSpace India Limited (NSIL), Bengaluru, the commercial arm of the Department of Space. It covers the GSAT-7C satellite capability, which the source describes as indigenously designed, developed and manufactured in India.
The intended role of GSAT-7C is to provide secure, resilient and seamless communication support for Indian Air Force assets. The satellite is expected to improve connectivity among airbases, ground radars, airborne early warning platforms and other systems, including for beyond line-of-sight operations.
GSAT-7C will be the Indian Air Force’s second dedicated communication satellite. Its first such satellite, GSAT-7A, was launched in December 2018. The Defence Acquisition Council had earlier accorded Acceptance of Necessity for the GSAT-7C programme in November 2021.
Varunastra heavyweight torpedoes for the Indian Navy
The second agreement, worth ₹1,543 crore, has been signed with Bharat Dynamics Limited (BDL), Hyderabad, for the supply of Varunastra heavyweight torpedoes. Varunastra is an indigenous ship-launched anti-submarine torpedo developed by the Naval Science and Technological Laboratory (NSTL) of the Defence Research and Development Organisation (DRDO).
As described in the source, the torpedo is built for anti-submarine warfare and has advanced manoeuvring capability to engage enemy submarines at long range. It is intended to improve the Indian Navy’s capability against submarine threats in both shallow and deep waters, including in environments where acoustic countermeasures are present.
Manufacturer specifications cited in the article state that Varunastra is 7.780 metres long, 533.4 mm in diameter, and has a combat weight of approximately 1,850 kg, with the exercise version weighing about 1,605 kg. It is electrically propelled using silver-oxide zinc batteries and contra-rotating propellers, has selectable speeds of 27 and 40 knots, can operate at depths from 8 metres to 600 metres, and has a range of around 40 kilometres.
The torpedo was first inducted into the Indian Navy in 2016. BDL has indicated that the order will be completed within 42 months and has previously produced and delivered Varunastra torpedoes under earlier contracts.
What the two deals mean
Taken together, the contracts cover two separate military requirements: secure space-based communications for the Indian Air Force and undersea strike capability for the Indian Navy. Both also involve Indian organisations already associated with these domains — NSIL in the space sector and BDL, working with NSTL, in naval weapons production.
The source says these procurements are part of the continuing effort to build sovereign military capability in space and undersea domains while reducing dependence on foreign suppliers for strategically important systems.
