BEL, Indian Defence Firms to Benefit from ₹40,000 Cr Emergency Procurement Push

Key Highlights:
- Indian defense forces approve Rs 40,000 crore for emergency procurement under Operation Sindoor.
- Focus on critical equipment: surveillance drones, kamikaze drones, missiles, and ammunition.
- Delivery timeline set for 3 to 6 months to ensure rapid deployment.
- Domestic firms, including Bharat Electronics, expected to secure contracts, boosting local defense production.
The Indian defense forces are set to make emergency purchases worth Rs 40,000 crore to enhance combat readiness during Operation Sindoor. Led by senior military officials, this initiative focuses on acquiring key systems being prioritized under the emergency powers, including surveillance drones, kamikaze drones, missiles, and various types of ammunition. Some of these, like the BrahMos and Scalp cruise missiles, have already been deployed in operations against Pakistan.
These emergency purchases ensure that the equipment is procured within a strict timeline, helping meet immediate operational requirements. This is the fifth such tranche of emergency procurement since 2019. Procurement teams from the Army, Navy, and Air Force will coordinate with defense finance advisors to manage purchases efficiently.
Indian public and private defense firms, including Bharat Electronics and Solar Defence, are expected to receive orders for low-level radars and other high-tech systems. The forces also plan to acquire Heron Mark 2 drones, which have been instrumental in surveillance during Operation Sindoor. Given the current conflict and its evolving demands, the Indian government may consider additional funds for defense needs in future budgets.
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What is emergency defence procurement power?
- Emergency defence procurement power allows the armed forces to bypass standard procurement timelines for urgent military needs.
- Under it, the equipment must be delivered quickly—often within 3 to 6 months.
- The powers are activated during conflict, tensions, or natural disasters.
- Financial limits are set for each procurement cycle, allowing the military to negotiate directly.
- This mechanism was used in previous border clashes and now during Operation Sindoor.
- According to the Ministry of Defence, for items previously supplied by Defence PSUs or ordnance factories, the government can issue Letters of Intent (LoI) to speed up procurement before a full contract is signed.