Defence Ministry Signs ₹6,900 Crore Deal for Artillery Systems and Vehicles With Bharat Forge and Tata Advanced Systems

The Ministry of Defence (MoD) has signed contracts worth ₹6,900 crore with Bharat Forge Limited and Tata Advanced Systems Limited. The agreement includes the procurement of 155mm/52 calibre Advanced Towed Artillery Gun Systems (ATAGS) and high mobility 6×6 gun towing vehicles.

As of 12:45 PM on March 27, Bharat Forge share price was trading at ₹1,169.55, down 1.13% for the day, 12.63% over the past month, and 23.18% in the last 6 months.

Breakdown of the Procurement

Bharat Forge will supply 184 units of the ATAGS, developed in collaboration with the Defence Research and Development Organisation (DRDO). This forms 60% of the total contract value. Tata Advanced Systems will provide the 6×6 towing vehicles required to mobilise these artillery systems in the field.

ATAGS to Replace Older Systems

The 155mm/52 calibre ATAGS are intended to replace older, smaller calibre guns currently in service. These new systems offer increased range and improved targeting accuracy. The move is part of the Army’s ongoing efforts to modernise its artillery regiments and phase out outdated equipment.

Private Sector Involvement

This is the first major order for towed artillery guns placed by the Indian Army with private companies. It is expected to increase production activity in the domestic defence sector and contribute to the broader goal of self-reliance in defence manufacturing.

Context and Capital Spend

With this latest contract, the total value of capital procurement signed by the Ministry of Defence for FY 2024-25 has reached ₹1.40 lakh crore. Earlier, on March 20, the Defence Acquisition Council cleared defence acquisition proposals worth over ₹54,000 crore. These included approvals for aircraft systems, tank engines, and other military hardware.

The ATAGS systems were developed by DRDO’s Armament Research and Development Establishment in Pune. During the contract signing, the project director from DRDO was formally recognised for contributions to the system’s development.

Conclusion

The current procurement adds new capabilities to the Indian Army’s artillery regiments while expanding domestic production of military systems.

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