MoD Signs Contracts Worth ₹62,700 Crore with HAL for Supply of 156 LCH Prachand to Armed Forces

Published On: March 29, 2025

New Delhi, 28 March 2025: The Ministry of Defence (MoD) signed two major contracts with Hindustan Aeronautics Limited (HAL) for the supply of 156 Light Combat Helicopters (LCH), Prachand, along with training and associated equipment, valued at ₹62,700 crore (excluding taxes).

Breakdown of Contracts:

66 LCHs for the Indian Air Force (IAF)
90 LCHs for the Indian Army

The supply of these helicopters will commence from the third year and will be phased over the next five years, significantly enhancing the combat capabilities of the Armed Forces, especially at high altitudes.

LCH Prachand: Indigenous Technological Marvel

LCH Prachand is India’s first indigenously designed and developed combat helicopter, capable of operating at altitudes over 5,000 meters. With a focus on ‘Make in India’ and Aatmanirbhar Bharat, the helicopter boasts a large number of components designed and manufactured domestically. The contract aims to achieve an indigenous content of over 65% during the execution phase, involving over 250 domestic companies, most of which are MSMEs.

Boost to Domestic Industry and Job Creation

The execution of these contracts is expected to generate over 8,500 direct and indirect jobs, contributing to India’s defence ecosystem and strengthening self-reliance in the aerospace sector.

Contract with Metrea Management for Wet Leasing of FRA

In addition, the Ministry of Defence signed a contract with Metrea Management for the wet leasing of one Flight Refuelling Aircraft (FRA) to provide Air-to-Air refuelling training for IAF and Indian Navy pilots.

The FRA, a KC-135 Aircraft, will be delivered within six months, making it the first FRA to be wet-leased by the IAF, enhancing operational readiness and training capabilities.

Record-Breaking Year for Defence Contracts

With the signing of these three contracts, the total number of contracts signed by the MoD during 2024-25 has risen to 193, with an overall contract value exceeding ₹2,09,050 crore—the highest ever and nearly double the previous highest figure.

Contracts to Domestic Industry: 177 (92%)
Value of Domestic Contracts: ₹1,68,922 crore (81%)

These contracts mark a significant milestone in India’s defense modernization efforts and reinforce the government’s commitment to strengthening indigenous defense capabilities.