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.

Questions Related to Exams

Q1. Which company is involved in the procurement of Electronic Fuzes for the Indian Army?

A: Bharat Electronics Limited (BEL), Pune.

Q2. How much is the total cost of the contract for Electronic Fuzes procurement?

A: Rs 5,336.25 crore.

Q3. What is the strategic aim of the project related to ammunition stocks?

A: To minimize imports, achieve self-sufficiency, obtain critical technologies, and secure stock against supply chain disruption.