India Inks ₹5,083 Crore Defence Pacts For ALH Mk-III Helicopters And Shtil Missiles

The Ministry of Defence has finalised contracts worth ₹5,083 crore to strengthen India’s maritime security capabilities.

The agreements cover the purchase of six Advanced Light Helicopters (ALH) Mk-III (Maritime Role) for the Indian Coast Guard and Surface-to-Air Vertical Launch–Shtil missile systems for the Indian Navy. The contracts were signed in the presence of Defence Secretary Rajesh Kumar Singh in New Delhi.

The helicopter deal, valued at ₹2,901 crore, has been awarded to Hindustan Aeronautics Limited (HAL), Bengaluru. It includes operational role equipment, engineering support and performance-based logistics support. The helicopters fall under the indigenously designed, developed and manufactured category.

The ₹2,182 crore missile contract has been signed with Russia’s JSC Rosoboronexport for deployment on frontline naval warships.

How Will The ALH Mk-III Strengthen The Coast Guard?

The ALH Mk-III (Maritime Role) helicopters are twin-engine platforms equipped with advanced systems. They can work both onshore and on sea vessels. It has facilitated numerous maritime operations such as surveillance, search-and-rescue, offshore installations, and fishermen protection.

The project is expected to involve more than 200 micro, small and medium enterprises (MSMEs) in the supply chain and generate around 65 lakh man-hours of employment. It is also in line with the Aatmanirbhar Bharat and Make in India programmes of the government.

What Role Will The Shtil Missile Systems Play?

The Shtil missile systems will enhance the Navy’s layered air defence architecture. Designed for rapid-reaction and all-weather engagement, they are intended to protect frontline warships against diverse aerial threats.

It also improves survivability in contested maritime environments. The agreement also highlights the continuing defence partnership between India and Russia.

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What Does This Mean For Investors?

Market-wise, the contracts grant visibility of the order book to HAL and strengthen the defence manufacturing in India. The sustained capital spending on defence will enable revenue pipelines in the long term for both large projects in the public sector and MSME suppliers.

For investors tracking defence stocks, sustained order inflows and policy backing for indigenisation strengthen the sector’s structural growth outlook. Execution timelines, margins and follow-on orders will remain key indicators to watch before investing.

Sources:

The Hindu

Economic Times

Fortune