Govt To Procure Rs 2,000–3,000 Cr Invar Missile Order Form Bharat Dynamics; Shares Up 2%

Last Updated:May 27, 2025, 14:06 IST

The Ministry of Defence is finalising a procurement order for 500 Invar anti-tank guided missiles (ATGMs) from state-run Bharat Dynamics, say reports

The Ministry of Defence is finalising a procurement order for 500 Invar anti-tank guided missiles (ATGMs) from state-run Bharat Dynamics Ltd (BDL), with the deal expected to be worth between Rs 2,000 crore and Rs 3,000 crore, Moneycontrol.com has reported, citing a senior government official.

The acquisition is part of a broader initiative to bolster India’s armoured warfare capabilities by equipping T-90 main battle tanks with precision-guided missile systems.

“Invar missiles are designed to be launched from tank platforms. The Defence Ministry is finalising an order for 500 missiles from BDL, with the total expenditure expected to be in the range of Rs 2,000 crore–3,000 crore,” the official told Moneycontrol.

Known for their accuracy and effectiveness, Invar missiles are already deployed on India’s frontline armoured units. The proposed order is currently undergoing financial vetting to determine the exact cost and, consequently, the level of approval it will require.

“Orders up to Rs 2,000 crore can be cleared by the Defence Minister. If the value is closer to Rs 3,000 crore, approval from the Finance Minister is needed. Deals exceeding Rs 3,000 crore must go through the Cabinet,” the official said.

Large-scale defence procurements such as this typically pass through the Defence Acquisition Council (DAC), which is chaired by the Defence Minister and can clear purchases up to Rs 2,000 crore. Beyond that, higher-level approvals come into play.

Earlier this month, the DAC had approved emergency procurement worth approximately Rs 40,000 crore to bolster India’s defence preparedness.

The BDL missile order aligns with the Centre’s ‘Make in India’ initiative to enhance self-reliance in defence manufacturing. Bharat Dynamics, a key supplier to the Indian armed forces, is known for producing a range of advanced missile systems.

The missile acquisition is also expected to improve India’s operational readiness, especially along the sensitive western and northern borders where the T-90 tanks are widely deployed.

“The emphasis on enhanced firepower underlines the strategic intent behind this order. BDL has already established a proven track record in delivering these systems,” the official added.

The move comes on the heels of Operation Sindoor, a recent high-precision military strike conducted by Indian forces in response to a deadly terror attack in Pahalgam. The operation, which targeted terrorist infrastructure in Pakistan and Pakistan-occupied Jammu & Kashmir, reportedly relied heavily on indigenous technologies including drones, electronic warfare, and layered air defence systems.

This push for modernisation and indigenous sourcing has helped BDL solidify its strategic importance. The company currently holds an order book worth Rs 3,110 crore and expects 28–30% revenue growth in FY25. It has also made significant progress in localising critical components and plans to double its production over the next 3–5 years and triple it within a decade.

Shares of Bharat Dynamics were up over 2% on Monday ahead of its Q4 earnings announcement, reflecting investor optimism over the potential deal and the company’s long-term growth prospects.

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