In a decisive move to bolster the combat capabilities of its Armed Forces, the Ministry of Defence (MoD) has entered into two significant contracts with Hindustan Aeronautics Limited (HAL) for the procurement of 156 Light Combat Helicopters (LCH) named Prachand. Valued at ₹62,700 crore (excluding taxes), these contracts comprise the supply of 66 LCHs for the Indian Air Force (IAF) and 90 for the Indian Army.
Beginning from the third year, the delivery of these advanced helicopters will be phased over the next five years. This acquisition is poised to enhance India’s military readiness, especially in high-altitude areas where operational demands are critical.
The LCH Prachand represents a crowning achievement in India’s defense manufacturing landscape, being the country’s first indigenous combat helicopter. It is uniquely designed to function effectively at altitudes exceeding 5,000 meters. Promoting the ‘Make in India’ initiative and Aatmanirbhar Bharat (self-reliant India), the LCH is equipped with a considerable portion of components that are domestically manufactured. The MoD aims for an indigenous content of over 65% in this program, engaging over 250 domestic companies in the production, with a significant focus on Micro, Small, and Medium Enterprises (MSMEs).
The implementation of these contracts is set to generate more than 8,500 direct and indirect employment opportunities, thus invigorating India’s defense ecosystem and fortifying self-sufficiency in the aerospace sector.
In a related development, the MoD has also finalized a contract with Metrea Management for the wet leasing of a Flight Refuelling Aircraft (FRA) to facilitate Air-to-Air refuelling training for IAF and Indian Navy pilots. The FRA, a KC-135 aircraft, is scheduled for delivery within six months, marking a pioneering step as it will become the first FRA to be wet-leased by the IAF, enhancing both operational readiness and training functionalities.
This year has proven to be a record-breaking one for defense contracts, with the MoD signing a total of 193 contracts in the 2024-25 period, with an aggregate value exceeding ₹2,09,050 crore—an unparalleled sum and nearly double that of the previous highest figure. Out of these contracts, an impressive 177, constituting 92%, are directed towards the domestic industry, amounting to a value of ₹1,68,922 crore (81%).
These developments signify a remarkable milestone in India’s ongoing defence modernization efforts, underscoring the government’s unwavering commitment to enhancing indigenous defence capabilities and fostering a robust domestic defence industry.
