BHEL partners with Leonardo S.p.A for air defense guns for India.

On August 12, 2023, Bharat Heavy Electricals Ltd (BHEL) entered into a partnership with the renowned Italian defense company, Leonardo S.p.A, to supply air defense guns to the Indian Army. This partnership comes in response to the request for proposal issued by the Ministry of Defense last October, which seeks 220 air guns and approximately 1.42 lakh rounds of ammunition, with an estimated contract value of around Rs 6,500 crore (more than 72,000,000 euros).
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Logo of Leonardo S.p.A and BHEL with the respective country flags on Background (Picture source: Army Recognition )

The bid has attracted attention from three significant contenders: Larsen & Toubro, Advanced Weapons & Equipment India Ltd (AWEIL), and the BHEL-Leonardo consortium. Notably, AWEIL was previously part of the Ordnance Factory Board (OFB) and transitioned into its current form in 2021 after the corporatization of OFB.

The Indian government's vision has always been to prioritize indigenization in defense procurement. The inclusion of Leonardo S.p.A in this project underscores the importance of integrating global expertise with local capabilities to achieve the best outcomes for the Indian Army.

BHEL's announcement highlighted that the Collaboration Agreement for Air Defense Gun (ADG) and Electro-Optical Fire Control System (EOFCS) is a long-term commitment. This partnership aims to empower BHEL with the capabilities to design, engineer, manufacture, and assemble advanced defense systems. While BHEL has chosen to collaborate with an international partner, other bidders are leveraging their in-house expertise. Last year, Larsen & Toubro secured a contract for the Indian Air Force, providing a comprehensive air defense system with advanced radar and fire control systems.

India's defense strategy is evolving, with a focus on developing a multi-layered air defense system to counter various aerial threats. This system encompasses a range of interception capabilities, from very short-range (less than 10 km) to long-range.

The current RFP for the Indian Army is distinct from previous ones, emphasizing a streamlined system without including radar. This decision has sparked discussions about the balance between indigenous capabilities and the benefits of international collaborations.

The urgency for advanced Army Air Defense (AAD) systems cannot be overstated. Recent assessments have indicated that a significant portion of the Indian Army’s existing air defense systems requires upgrades or replacements. Given the current geopolitical climate, swift decisions and implementations of such contracts are paramount to ensure the Indian armed forces remain at the forefront of defense capabilities.