Defence Ministry Signs ₹697.35 Cr Deals With ACE and JCB India

The Ministry of Defence (MoD) has signed contracts worth ₹697.35 crore with Action Construction Equipment Ltd (ACE) and JCB India Ltd for the supply of 1,868 Rough Terrain ForkLift Trucks (RTFLTs). These trucks will be used by the Indian Army, Indian Air Force, and Indian Navy to improve logistics and operations.

ACE Gets ₹420 Crore Contract

Of the total order, ACE has secured a ₹420 crore contract to supply 1,121 RTFLTs. The contract was signed in the presence of Defence Secretary R K Singh. The forklifts will be manufactured under the ‘Buy (Indian)’ category, which falls under the government’s push for domestic defence production.

The remaining 747 RTFLTs will be supplied by JCB India Ltd.

Local Manufacturing 

The procurement project is expected to support Micro, Small, and Medium Enterprises (MSMEs) involved in component manufacturing and assembly. The initiative is part of the Aatmanirbhar Bharat plan to increase domestic production in the defence sector.

RTFLTs are used for handling materials in defence operations. They will be deployed across various military bases and logistics hubs to transport supplies. The machines are to operate in rough terrains, improving efficiency in loading and unloading tasks.

Separate ₹1,220.12 Crore Deal for Radios

In addition to the RTFLT contracts, the MoD has also signed a ₹1,220.12 crore contract with Bharat Electronics Limited (BEL) for 149 Software Defined Radios (SDRs). These radios will be used by the Indian Coast Guard for secure communication and data sharing.

Market Impact

Following the announcement, as of February 21, 10:14 AM, Action Construction Equipment Ltd was trading at ₹1,197.00, down 4.03% today, 6.82% over the past month, but up 8.03% in the past year, while Bharat Electronics Ltd is at ₹254.80, down 2.09% today as of 10:15 AM.

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