MoD & BEL Sign ₹1,950 Crore Contract for Mountain Radars for IAF

Bharat Electronics Limited, a leading public sector undertaking, reported a significant development as the Ministry of Defence signed a major capital acquisition contract with the company for the procurement of two Mountain Radars for the Indian Air Force, valued at approximately ₹1,950 crore, in the fourth quarter, driven by the government's push for indigenous defence capabilities under the Aatmanirbhar Bharat and Make-in-India initiatives. The contract falls under the 'Buy (Indian–Indigenously Designed, Developed and Manufactured)' category, with the Mountain Radar system designed and developed by the Electronics and Radar Development Establishment under the Defence Research and Development Organisation, and will be manufactured by Bharat Electronics Limited, indicating a strong revenue stream from the defence segment. On a quarter-over-quarter basis, the company's performance is expected to be boosted by such major contracts, with the EBITDA margin likely to remain stable. The capital expenditure for the project is approximately ₹1,950 crore, with the company guiding for a significant boost to India's air defence preparedness and strengthening overall national security, amidst key risks such as timely execution and deployment of the radar systems. Bharat Electronics Limited is a Navratna public sector undertaking under the Ministry of Defence, with the government holding a significant stake in the company, which has a market presence as a leading defence equipment manufacturer.