Ministry of Defence on 28 March 2025, signed two contracts with Hindustan Aeronautics Limited (HAL) for supply of 156 Light Combat Helicopters (LCH), Prachand, along with training and other associated equipment worth Rs. 62,700 crore, excluding taxes. The first contract is for supply of 66 LCHs to the Indian Air Force (IAF) and second is for supply of 90 LCHs to the Indian Army.
The supply of these helicopters shall commence from the third year and will be spread over the next five years. The contracts will enhance the combat capability of Armed Forces at high altitudes. LCH is India’s first indigenously designed and developed combat helicopter having a capability of operating at an altitude of over 5000 meters. This helicopter has a large number of components designed and manufactured in India and it is planned to achieve an overall indigenous content of over 65% during the execution of this procurement. This will involve over 250 domestic companies mostly MSMEs and will generate over 8,500 direct and indirect jobs.
Ministry of Defence also signed a contract with Metrea Management for Wet Leasing of one Flight Refuelling Aircraft (FRA) for providing air to air refuelling training to pilots of IAF and Indian Navy. Metrea will provide FRA (KC-135 aircraft) within six months which will be the first FRA to be wet leased by IAF. Metrea is a military contractor based in the United States which provides air logistics and surveillance, electronic and cyberwarfare services support to militaries in the US, Canada, NATO and allied countries.
With signing of these three contracts, the total number of contracts signed by Ministry of Defence during 2024-25 reaches to 193 with overall contract value exceeding Rs 2,09,050 crore, which is the highest ever and nearly double the previous highest figure. Out of these, the contracts to domestic industry are 177 (92%) with contract value Rs 1,68,922 Crore (81%).