In a significant boost to India’s defence preparedness and self-reliance in the defence sector, the Ministry of Defence has signed two major contracts worth ₹62,700 crore with Hindustan Aeronautics Limited (HAL) for the supply of 156 Light Combat Helicopters (LCH), named Prachand, to the Indian Armed Forces. This landmark agreement, announced on March 28, 2025, is a vital step towards strengthening the country’s aerial combat capabilities, particularly in high-altitude regions where such equipment is crucial.
Out of the total 156 helicopters, 66 will be inducted into the Indian Air Force while the remaining 90 will join the Indian Army’s fleet. The supply of these helicopters is scheduled to begin in the third year and will continue over a period of five years. What makes this procurement all the more remarkable is that the LCH, Prachand, is India’s first indigenously designed and developed combat helicopter, capable of operating at altitudes beyond 5,000 meters. This will provide a strategic edge to the Armed Forces, especially in mountainous and challenging terrains.
The project is not only a testament to India’s growing technological capabilities but also a reflection of the government’s commitment to “Aatmanirbhar Bharat” (Self-reliant India). Over 65% of the content used in the production of these helicopters will be indigenous, involving more than 250 domestic companies, most of which are small and medium enterprises (MSMEs). This initiative is expected to generate employment opportunities for over 8,500 people, both directly and indirectly, creating a ripple effect of economic benefits across various sectors.
In another key development, the Ministry of Defence has also signed a contract with Metrea Management for the wet leasing of one Flight Refuelling Aircraft (FRA). Under this agreement, Metrea will provide a KC135 aircraft within six months to offer air-to-air refuelling training for pilots of the Indian Air Force and the Indian Navy. This will be the first time the IAF is opting for wet leasing of such an aircraft, reflecting the urgent need to enhance training infrastructure for India’s pilots.
These contracts are part of a broader, historic trend. With the signing of these new agreements, the total number of contracts inked by the Ministry of Defence during the financial year 2024-25 has reached 193, with a cumulative value exceeding ₹2,09,050 crore. This is the highest ever recorded in India’s defence procurement history and is nearly double the previous highest figure. Notably, 92% of these contracts have been awarded to domestic industries, underlining the government’s strong push for indigenous production and long-term economic growth.
At a time when regional security dynamics remain tense and the demand for self-sufficiency in defence has never been greater, these contracts symbolize not just a strategic upgrade for India’s Armed Forces but also a ray of hope for thousands of workers, engineers, and small businesses who will play a crucial role in building these world-class defence assets.
