Ministry Of Defence Signs ₹4.25 Billion Indian Navy Deal With Bharat Forge

Ashik Bothra - Mumbai Bureau Jun 19, 2026 1,450 Views

The Indian Ministry of Defence has awarded a ₹4.25 billion contract to Bharat Forge Limited to build and supply 12 marine gas turbine generators for the Indian Navy. The units feature 60% indigenous content, lowering import reliance and establishing domestic maintenance support for frontline warships over a five-year timeline.

NEW DELHI — In a major boost to India's domestic military manufacturing capabilities, the Ministry of Defence (MoD) has officially signed a ₹425 crore (₹4.25 billion) contract with Pune-based Bharat Forge Limited. The contract covers the acquisition and delivery of highly specialized marine gas turbine generators designed to power the Indian Navy's frontline surface combatants.

The contract was formalized at South Block in New Delhi on June 19, 2026, in the presence of Defence Secretary Shri Rajesh Kumar Singh and senior military leadership. The five-year procurement program marks a critical shift toward reducing technological reliance on foreign supply chains for warship power architectures.

Technical Specifications and Strategic Scope

Under the strict terms of the newly finalized defense agreement, Bharat Forge will manufacture and supply 12 independent sets of 1.25 MW Marine Gas Turbine Generators (GTGs). These high-performance utility complexes will be specifically designated for installation aboard the Indian Navy’s Kolkata-class guided-destroyer fleet, replacing lower-capacity units currently operating at sea.

The procurement has been processed under the strict "Buy (Indian)" procurement category of the Defence Acquisition Procedure (DAP-2020). To adhere to national defense guidelines, Bharat Forge must execute the project with a minimum of 60% indigenous content. This requirement ensures that the majority of critical sub-assemblies and metallurgical systems are engineered within domestic industrial corridors.

Expanding Naval Infrastructure in India

The signing of the contract directly aligns with Bharat Forge's ongoing efforts to scale up its dedicated marine propulsion segment. This defense manufacturing expansion is anchored by a recent Memorandum of Understanding (MoU) signed with the Government of Andhra Pradesh to build India's first private-sector Marine Gas Turbine facility in Visakhapatnam.

To support the production and long-term servicing of the 1.25 MW units, the company is establishing an advanced, dedicated integration and testing facility. This development ensures complete sovereignty over end-to-end life-cycle support, field engineering, and required component overhauls.

Official Sources Section

The detailed financial, structural, and technical frameworks highlighted in this news report are compiled directly from the official press statements released by the Press Information Bureau (PIB) on behalf of the Ministry of Defence. Operational parameters, ship classes, and manufacturing specifics correspond with statutory market updates published concurrently by Bharat Forge Limited on the National Stock Exchange of India (NSE) and the BSE Limited.

Quote Section

"According to officials from the Ministry of Defence, the project reinforces the government's long-term commitment to Aatmanirbhar Bharat and the Make-in-India directive. The contract marks an essential milestone toward establishing robust private-sector capabilities to manufacture and maintain marine gas turbine generators, which serve as the energy backbone for modern combat systems."

Why It Matters

The gas turbine generator serves as the main power generation system for modern naval vessels, supporting advanced radar networks, electronic warfare suites, and mission-critical weaponry. Historically, global disruptions in supply chains have delayed routine maintenance schedules for the Indian Navy's surface combatants, which relied heavily on imported equipment. By indigenizing this capability through a domestic private partner, the Indian Navy secures localized engineering access, lowering long-term maintenance costs and decreasing warship downtime during deployments.

Key Facts at a Glance

Total Investment: The Ministry of Defence has committed ₹4.25 billion to the domestic naval energy project.
Fleet Target: The 1.25 MW Marine Gas Turbine Generators will be deployed on Kolkata-class naval vessels.
National Sourcing: The order features a minimum 60% domestic component requirement under DAP-2020 rules.
Industrial Blueprint: The contract will cover a five-year execution period, backed by specialized domestic testing facilities.

FAQ Section

What is the function of a Marine Gas Turbine Generator on a warship?

A Marine Gas Turbine Generator converts fuel into high-output electrical energy. This electricity powers a warship's electrical infrastructure, including navigation, communications, advanced sensors, and primary combat systems.

Which specific vessels will receive these new Bharat Forge power systems?

The 12 newly contracted 1.25 MW generator sets will be allocated to the Indian Navy's Kolkata-class ships, replacing older, lower-capacity power units.

How does this specific contract affect private sector manufacturing in India?

The agreement establishes Bharat Forge as the first private-sector manufacturer in India to produce and support marine gas turbine components. This broadens the country's domestic aerospace and defense industrial base.

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