How will Bharat Forge & TASL’s ₹6,900 crore deal impact defence..

New delhi : India’s defence manufacturing sector has received a significant boost with Bharat Forge Limited and Tata Advanced Systems Limited (TASL) securing a ₹6,900 crore contract from the Ministry of Defence (MoD). The deal involves the procurement of 155mm/52 calibre Advanced Towed Artillery Gun Systems (ATAGS) and 6×6 high-mobility gun towing vehicles, marking a major step in strengthening India’s indigenous defence capabilities.

The ATAGS system is designed to modernize the Indian Army’s artillery by replacing older, smaller-calibre guns with a weapon that offers superior range and accuracy. This is the first large-scale procurement of an indigenously developed towed artillery system from private manufacturers, reinforcing India’s commitment to self-reliance in defence production under the ‘Aatmanirbhar Bharat’ initiative.

Bharat Forge will manufacture 184 guns, accounting for around 60% of the contract, at its facilities in Jeguri and Pune, while TASL will produce the remaining 128. The same distribution applies to the 327 gun towing vehicles being procured. Deliveries are expected to be completed within five years, with the project enhancing the indigenous defence ecosystem and creating employment opportunities in line with the ‘Make in India’ policy.

The Ministry of Defence emphasized the broader economic impact of the deal, highlighting how it contributes to industrial growth and technological advancement in India’s military sector. The contract also aligns with the government’s aggressive push for local procurement, with total capital defence acquisitions for the 2024-25 financial year now amounting to ₹1.40 lakh crore.

Bharat Forge’s stock saw a minor dip of 0.18% in the last trading session, closing at ₹1182.25 with a market capitalization of ₹56,522 crore. While its shares are above short-term moving averages, they remain below longer-term benchmarks. The company’s stock has yielded returns of 4.58% over the past year and 54.66% over two years, reflecting strong investor interest in defence manufacturing.

The Ministry of Defence also recognized the ATAGS Project Director at DRDO’s Armament Research and Development Establishment in Pune for his role in the system’s development. The collaboration between DRDO and private industry highlights India’s evolving defence manufacturing ecosystem.

This major procurement is expected to keep Bharat Forge in the spotlight, influencing investor sentiment and the broader defence sector in the Indian equity markets.