Economy · GS3.6, GS3.8 · 2026-10-16 · 3 min read · 2026-10-16-am
MoD Signs Rs 4,106 Crore Contracts for GSAT-7C Satellite and Varunastra Torpedoes
The Ministry of Defence signed contracts worth Rs 4,106 crore for the GSAT-7C communication satellite for the Indian Air Force and Varunastra heavy-weight torpedoes for the Indian Navy. These acquisitions aim to enhance secure communication and anti-submarine warfare capabilities, promoting indigenous defence manufacturing under the Aatmanirbhar Bharat initiative.
The MoD's contracts for GSAT-7C and Varunastra torpedoes strengthen India's defence communication and naval warfare capabilities while advancing self-reliance in defence technology.
Why is this in the news?
On October 15, 2026, the Ministry of Defence signed contracts worth Rs 4,106 crore for the GSAT-7C communication satellite and Varunastra heavy-weight torpedoes to enhance the Indian Air Force and Navy capabilities.
What contracts did the Ministry of Defence sign?
- Total contract value. The Ministry of Defence signed contracts worth approximately Rs 4,106 crore.
- GSAT-7C satellite contract. A Rs 2,563 crore contract was signed with New Space India Limited, Bengaluru, for the GSAT-7C communication satellite dedicated to the Indian Air Force.
- Varunastra torpedoes contract. A Rs 1,543 crore contract was signed with Bharat Dynamics Limited, Hyderabad, for Varunastra heavy-weight anti-submarine torpedoes for the Indian Navy.
Why are these acquisitions important?
- Enhanced communication for IAF. GSAT-7C is an indigenously designed, developed, and manufactured satellite that will provide secure, resilient, and seamless communication for Indian Air Force assets, strengthening operational effectiveness.
- Improved naval anti-submarine warfare. Varunastra is an indigenous ship-launched torpedo with advanced maneuvering capabilities, capable of engaging enemy submarines at long ranges, enhancing the Indian Navy's underwater warfare capabilities.
- Promotion of self-reliance. Both contracts support the Government’s Aatmanirbhar Bharat and Make-in-India initiatives by advancing domestic defence manufacturing and critical technology development.
Who were the key signatories and stakeholders?
- Contract signatories. The contracts were signed in New Delhi in the presence of Shri A Anbarasu, Additional Secretary and Director General (Acquisition), Department of Defence.
- Involved organisations. New Space India Limited (NSIL) and Bharat Dynamics Limited (BDL) are the manufacturing agencies for GSAT-7C and Varunastra respectively.
Key numbers
| Figure | What it measures | Source |
|---|---|---|
| Rs 4,106 crore | Total value of contracts signed by the Ministry of Defence | |
| Rs 2,563 crore | Contract value for GSAT-7C satellite | |
| Rs 1,543 crore | Contract value for Varunastra heavy-weight torpedoes |
Back to basics: Indigenous Defence Manufacturing
Indigenous defence manufacturing refers to the design, development, and production of defence equipment within the country to reduce dependence on foreign suppliers. It supports strategic autonomy, enhances security, and promotes economic growth by developing domestic industries and technologies. Initiatives like Aatmanirbhar Bharat and Make-in-India aim to boost self-reliance in critical defence technologies.
Practice: MCQ, Mains and revision
Prelims MCQ
Consider the following statements about the recent Ministry of Defence contracts: 1. The GSAT-7C satellite contract was signed with Bharat Dynamics Limited. 2. Varunastra torpedoes are designed to enhance anti-submarine warfare capabilities of the Indian Navy. Which of the statements given above is/are correct?
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
Answer and trap
Answer: (b). Statement 1 is incorrect because the GSAT-7C contract was signed with New Space India Limited, not Bharat Dynamics Limited.
Mains question (15 marks)
Examine the significance of recent defence contracts for GSAT-7C and Varunastra in advancing India's indigenous defence capabilities.
Examine: Analyze how these contracts contribute to enhancing India's defence technology and self-reliance.
Intro: Recent contracts for GSAT-7C and Varunastra mark a step towards strengthening indigenous defence capabilities.
- Detail the features and strategic importance of the GSAT-7C communication satellite for the Indian Air Force.
- Explain the role of Varunastra torpedoes in enhancing the Indian Navy's anti-submarine warfare.
- Discuss how these contracts align with the Aatmanirbhar Bharat and Make-in-India initiatives to promote self-reliance.
Conclusion: These acquisitions demonstrate India's commitment to advancing domestic defence manufacturing and operational effectiveness.
Quick revision
- What is the total value of the contracts signed by the Ministry of Defence for GSAT-7C and Varunastra?
- The total value of the contracts is approximately Rs 4,106 crore.
- Which company is responsible for manufacturing the GSAT-7C satellite?
- New Space India Limited, Bengaluru, is responsible for manufacturing GSAT-7C.
- What capability does the Varunastra torpedo enhance for the Indian Navy?
- Varunastra enhances the Indian Navy's anti-submarine warfare capability by engaging enemy submarines at long ranges.
Sources
- [1] Press Information Bureau: MoD inks Rs 4,106 crore contracts for GSAT-7C communication satellite and Varunastra Heavy Weight Torpedoes · 2026-10-15 · official
- [2] The Hindu: MoD signs ₹4,106-crore contracts for IAF communication satellite, Navy torpedoes · 2026-10-15 · newspaper