L&T bags its biggest ever defence contract worth Rs 4500 crore
Engineering giant Larsen and Tubro (L&T) announced on Friday about its Rs. 4500 crore deal with Ministry of Defence for providing self-propelled guns to the Indian Army.
In its biggest ever defensc deal, L&T has been assigned a contract by the Ministry of Defence, India for supplying 100 units of self propelled gun system of 155 mm/52 calibre. Delivery of units under the contract has to be carried out over the span of 42 months.
Defence ministry launched a programme in 2011, inviting bidders all across the world. This programme ‘Buy global’ marked a multiple series of evaluations and trials where L&T proved itself as best qualified player to bag the deal. L&T participated in the bidding with its technology partner Hanwha Tech Win (HTW). The qualification was tested seeing the performance of the K9 Vajra T self propelled Howitzer. This equipment was designed according to the requisites of the India army.
The defence equipment manufactured by HTW are already commissioned in the defence armies of Korea and few other countries. HTW has sold more than 1000 units to these countries combined.
According to the head of defence and aerospace at L&T. Mr. Jayant Patil this order will make the revenue pipeline more clear for the company and this order has given them much clarity about the defence of the company for the next 3-4 years. The company has been investing substantially in the defence sector earlier also. One of their marquee projects for the Indian defence forces includes developing a shipyard to facilitate the manufacturing process of the submarines from its base.
This order will boost make in India amidst the news of numerous deals happening at defence ministry where the orders were diverted to global market where ministry assigned contracts to foreign companies for highly advanced equipment.