The ₹2,563 crore satellite contract with New Space India Limited and ₹1,543 crore torpedo deal with Bharat Dynamics Limited aim to strengthen military communications and anti-submarine warfare capabilities through indigenous defence manufacturing.

The Ministry of Defence (MoD) has signed two defence contracts worth approximately ₹4,106 crore for an indigenous communication satellite for the Indian Air Force (IAF) and heavy-weight torpedoes for the Indian Navy, reinforcing domestic capabilities in critical military technologies.
The contracts, signed in New Delhi on October 15, cover the GSAT-7C communication satellite, valued at ₹2,563 crore, and Varunastra heavy-weight torpedoes worth ₹1,543 crore. The agreements were signed in the presence of A Anbarasu, Additional Secretary and Director General (Acquisition) in the Department of Defence, according to an official statement.
The ₹2,563 crore contract for GSAT-7C has been awarded to New Space India Limited (NSIL), Bengaluru. The indigenously designed, developed and manufactured satellite is intended to provide secure, resilient and seamless communication capabilities for the IAF's assets.
Dedicated satellite-based communication infrastructure is critical to coordinating military platforms and operations, particularly where reliable and secure connectivity is required. The GSAT-7C programme is expected to strengthen the Air Force's operational effectiveness by enhancing its communications capabilities.
The project also represents a domestic manufacturing push in a strategically sensitive segment, where secure communication systems are integral to military preparedness.
The second contract, worth ₹1,543 crore, has been signed with Bharat Dynamics Limited (BDL), Hyderabad, for Varunastra heavy-weight torpedoes for the Indian Navy.
Developed by the Naval Science and Technological Laboratory, Varunastra is an indigenous, ship-launched anti-submarine torpedo equipped with advanced manoeuvring capabilities. It is designed to engage enemy submarines at long ranges, strengthening the Navy's ability to counter underwater threats.
The contract adds to the role of domestic defence manufacturers in supplying specialised equipment for India's naval forces. BDL's involvement also places a public-sector defence manufacturer at the centre of the programme.
Together, the two agreements cover distinct but strategically important requirements: secure airborne military communications and ship-based underwater warfare capabilities. Their combined value of ₹4,106 crore reflects procurement spending across satellite communications and naval weapons systems.
The Ministry of Defence said the contracts would advance domestic defence manufacturing and promote self-reliance in critical technologies, in line with the government's Aatmanirbhar Bharat and Make in India initiatives.
The agreements underline the continued emphasis on indigenously designed and manufactured systems for the armed forces, with domestic entities NSIL and BDL involved in the two programmes.