MoD Seals Rs 5,336.25 Crore Deal With BEL For 10-year Supply Of Electronic Fuzes

The Ministry of Defence, in a significant development on December 15, 2023, sealed a landmark contract with Bharat Electronics Limited (BEL), Pune. This groundbreaking agreement entails the procurement of Electronic Fuzes for the Indian Army over a 10-year period, amounting to a total cost of Rs 5,336.25 crore.

Aligned with the ‘Aatmanirbhar Bharat‘ vision, this contract is a crucial step towards achieving self-sufficiency in ammunition manufacturing and securing the nation’s defense needs for the next decade.

Aatmanirbhar Bharat Initiative

The contract is executed under the ‘Manufacture of Ammunition for Indian Army by Indian Industry,’ a strategic initiative by the Government of India.
This initiative aims to meet the long-term ammunition requirements of the Indian Army while reducing dependence on imports.
The overarching goal is to build robust ammunition stocks, promote indigenous manufacturing, acquire critical technologies, and safeguard against supply chain disruptions.

Significance of Electronic Fuzes

Electronic Fuzes play a pivotal role as integral components of medium to heavy-caliber artillery guns.
These fuzes provide sustained artillery firepower, a critical capability for military operations.
The procurement of Electronic Fuzes is a strategic move to enhance the Indian Army’s operational capabilities, particularly in lethal engagements across various terrains, including high-altitude areas along the Northern Borders.

Manufacturing Centers: Pune and Nagpur

Bharat Electronics Limited (BEL) will spearhead the manufacturing of Electronic Fuzes at its existing Pune facility and the upcoming Nagpur Plant.
This distribution of manufacturing centers ensures efficient production and contributes to the resilience of the supply chain.
The involvement of these facilities highlights BEL’s commitment to delivering high-quality products that meet the stringent requirements of the Indian Army.

Employment Generation and Industry Participation

The Electronic Fuzes procurement project is not only a strategic move for defense preparedness but also a catalyst for economic development.
The initiative is expected to generate employment for one and a half lakh man-days, providing livelihoods and contributing to the economic growth of the region.
Furthermore, active participation of Indian industries, including Micro, Small, and Medium Enterprises (MSMEs), in ammunition manufacturing will foster a broader ecosystem for ammunition production in the country.