India Signs Rs 62700 Crore Contract for 156 LCH Prachand

Ministry of Defence on March 28, 2025, signed two contracts with Hindustan Aeronautics Limited (HAL) for supply of 156 LCH.

India Signs Rs 62700 Crore Contract for 156 LCH Prachand

Overview of the Landmark Deal

On March 28, 2025, the Ministry of Defence (MoD) signed two significant contracts with Hindustan Aeronautics Limited (HAL) for the procurement of 156 Light Combat Helicopters (LCH), known as Prachand. Valued at Rs 62,700 crore (excluding taxes), this is the largest order ever placed for HAL. The deal includes:

• 66 helicopters for the Indian Air Force (IAF).
• 90 helicopters for the Indian Army.

The delivery of these helicopters will commence in 2027 and will be completed over a span of five years. The LCH Prachand is specifically designed to enhance combat capabilities in high-altitude regions, making it a critical asset for operations along the China and Pakistan borders.

Features and Capabilities of LCH Prachand

The LCH Prachand is India’s first indigenously designed and developed combat helicopter. It boasts cutting-edge features tailored for modern warfare:

• High-Altitude Operations: Capable of operating at altitudes above 5,000 meters, including the challenging terrains of Siachen and Ladakh.
• Versatile Combat Roles: Equipped for tasks such as:
  • Destroying enemy air defenses.
  • Counter-insurgency operations in jungle and urban settings.
  • Anti-tank missions.
  • Search-and-rescue missions.
  • Engaging slow-moving aerial targets like drones.
• Advanced Weaponry: Includes air-to-air missiles, air-to-ground missiles, laser-guided rockets, and a nose-mounted gun for close combat.
• Stealth and Survivability: Features modern stealth technology, armor protection, and night attack capabilities.

Boost to Indigenous Manufacturing

This contract is a significant milestone in India’s Atmanirbhar Bharat initiative, emphasizing self-reliance in defense manufacturing:

• Indigenous Content: Over 65% of the helicopter components will be domestically produced during execution.
• Support for MSMEs: More than 250 Indian companies, primarily Micro, Small, and Medium Enterprises (MSMEs), will contribute to the project.
• Job Creation: The deal is expected to generate over 8,500 direct and indirect jobs, further strengthening India’s aerospace ecosystem4.

Additional Contracts Signed by MoD

The Ministry also signed a contract with Metrea Management for the wet lease of a Flight Refueling Aircraft (FRA). Key details include:

• Delivery of a KC-135 FRA within six months.
• Training provision for air-to-air refueling pilots from both the IAF and Indian Navy.
  This marks the first time the IAF has opted for wet leasing an FRA.

Record-Breaking Year for Defence Contracts

With this deal, the total value of contracts signed by MoD during FY 2024–25 has reached Rs 2.09 trillion—the highest ever. Key statistics include:

• 193 contracts signed, nearly double the previous record.
• 92% awarded to domestic industries, amounting to Rs 1.69 trillion.

Strategic Importance

The LCH Prachand helicopters are expected to significantly bolster India’s defense capabilities in high-altitude warfare. Their deployment along critical borders with China and Pakistan ensures readiness for modern combat scenarios. Additionally, this deal reinforces India’s commitment to reducing dependency on foreign defense imports while fostering domestic innovation.

Conclusion

The Rs 62,700 crore contract not only strengthens India’s armed forces but also underlines its growing prowess in indigenous defense manufacturing. With advanced technological features and widespread domestic participation, the LCH Prachand program is poised to be a game-changer in India’s defense strategy.