Govt readies Rs 2,000 crore-3,000 crore order to buy Invar missiles from Bharat Dynamics

“Orders of up to Rs 2,000 crore are cleared by the Defence Minister, while those closer to Rs 3,000 crore require the Finance Minister’s approval. If the deal value exceeds Rs 3,000 crore, it will need clearance from the Cabinet,” the official added.

Procurement proposals of this scale typically pass through the Defence Acquisition Council (DAC), chaired by the Defence Minister, which clears defence purchases up to Rs 2,000 crore. Beyond that threshold, higher-level approvals come into play as per procurement protocols.

Separately, the Defence Acquisition Council (DAC) had earlier this month granted approximately Rs 40,000 crore under emergency powers for procurement of arms and ammunition for the defence forces.

The BDL procurement move comes amid a broader push by the government to enhance self-reliance in defence manufacturing under the Make in India initiative. Bharat Dynamics Ltd, which manufactures a range of missile systems for the Indian Armed Forces, plays a pivotal role in delivering high-precision weaponry.

The procurement is expected to bolster India's operational readiness along both the western and northern borders, where mechanised formations rely heavily on T-90 platforms.

The official further noted that, “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 Defence Ministry is likely to move ahead with the procurement once the internal financial assessment is complete and the appropriate level of approval is secured.

The planned missile procurement comes in the aftermath of Operation Sindoor, a high-precision military action launched by the Indian armed forces in response to a deadly terrorist attack in Pahalgam that claimed 26 civilian lives. The operation targeted terrorist infrastructure located in Pakistan and Pakistan-occupied Jammu and Kashmir, while deliberately avoiding any confrontation with Pakistani military assets.

Operation Sindoor was marked by the extensive use of indigenous high-tech systems, including drone warfare, layered air defence, and electronic warfare. Its success has been widely seen as a testament to India's growing self-reliance in military technology. The move to procure Invar anti-tank guided missiles from Bharat Dynamics Ltd aligns with this broader push towards operational preparedness in the wake of heightened regional threats.

Bharat Dynamics is well-positioned to capitalise on India's defence modernisation efforts, with a robust order book of Rs 3,110 crore, estimated revenue growth of 28-30 percent in FY25, and successful indigenisation of critical components to overcome supply chain issues. The company’s robust order book, growing export potential, and aggressive capacity expansion plans underpin its long-term growth trajectory. BDL is expanding its manufacturing capabilities to meet increasing demand, planning to double production in 3-5 years and triple it over the next decade.