Hyderabad: The Ministry of Defence signed two contracts worth a combined Rs 4,106 crore on October 15, 2026, for military communications and underwater warfare systems. The deals cover the GSAT-7C communication satellite for the Indian Air Force and Varunastra heavy weight torpedoes for the Indian Navy.
The ministry signed a Rs 2,563 crore agreement with Bengaluru-based New Space India Limited for the GSAT-7C satellite. The indigenously designed, developed and manufactured satellite will strengthen secure and reliable communications for Indian Air Force assets. As a result, the system is expected to improve operational effectiveness.
Meanwhile, the ministry signed a separate contract worth Rs 1,543 crore with Hyderabad-based Bharat Dynamics Limited for Varunastra heavy weight torpedoes. The indigenous weapon will strengthen the Navy’s ability to engage enemy submarines over long ranges.
Varunastra torpedoes to boost the Navy’s underwater warfare capabilities
The Naval Science and Technological Laboratory developed Varunastra as a ship-launched heavy weight anti-submarine torpedo. Its advanced manoeuvring capabilities allow it to engage enemy submarines at long ranges. Therefore, the weapon will add to the Indian Navy’s underwater combat capabilities.
The ministry signed both contracts in New Delhi on October 15. A. Anbarasu, Additional Secretary and Director General (Acquisition) in the Department of Defence, attended the signing ceremony.
The two agreements address distinct military requirements. While the GSAT-7C satellite will support secure communications for the Air Force, Varunastra will strengthen the Navy’s anti-submarine warfare capability.
Moreover, both projects support India’s push to expand domestic defence manufacturing. The government aims to develop critical military technologies within the country and reduce reliance on external sources.
The contracts also align with the Aatmanirbhar Bharat and Make in India initiatives. Through indigenous design, development and production, these projects seek to strengthen domestic industrial capabilities in strategically important areas.
The satellite agreement places secure military communications at the centre of the Air Force’s modernisation efforts. Reliable communication links are essential for coordinating operations and supporting military assets. The GSAT-7C programme is expected to contribute to those requirements.
Similarly, the Varunastra contract supports the Navy’s need for effective underwater combat systems. Its long-range engagement capability will help the service address submarine threats.
Together, the contracts represent an investment in two important areas of India’s defence preparedness. They also provide further support for domestic companies involved in developing and producing military equipment.
