Defence Ministry plans ₹2,000–3,000 crore missile order to equip T-90 tanks

Team Finance Saathi

    27/May/2025

What's covered under the Article:

  1. The Defence Ministry is finalising a procurement of 500 Invar missiles from Bharat Dynamics Ltd to equip T-90 tanks under a ₹2,000–3,000 crore deal.

  2. The deal strengthens India’s firepower following Operation Sindoor, showcasing a pivot towards indigenous, high-precision missile systems.

  3. BDL’s strong order book, capacity expansion and focus on defence indigenisation align with India’s strategic goals and growth in FY25.

The Ministry of Defence is moving forward with a significant procurement proposal for 500 Invar anti-tank guided missiles (ATGMs) from the state-owned Bharat Dynamics Ltd (BDL), in a deal valued between ₹2,000 crore and ₹3,000 crore. This strategic initiative is aimed at bolstering India’s armoured warfare capabilities, especially in light of recent military operations and ongoing regional tensions.


Equipping T-90 Tanks with Advanced Firepower

The Invar missile is a precision-guided weapon system designed to be launched from T-90 tanks, which are a mainstay of India’s armoured divisions deployed along the northern and western borders. With a focus on enhanced battlefield lethality, the Ministry is planning to integrate these advanced systems onto India’s frontline tanks to counter evolving threats.

According to a senior official, the deal is currently under financial assessment, and the final cost will determine the level of government clearance required:

  • Up to ₹2,000 crore: Cleared by the Defence Minister

  • Around ₹3,000 crore: Requires Finance Minister’s approval

  • Exceeds ₹3,000 crore: Needs Cabinet approval

This stepwise approval protocol ensures budgetary discipline and operational oversight over large defence procurements.


Role of the Defence Acquisition Council (DAC)

All proposals of this magnitude pass through the Defence Acquisition Council (DAC), chaired by the Defence Minister. The DAC is empowered to clear acquisitions up to ₹2,000 crore. Beyond this threshold, approvals escalate to higher echelons, including the Finance Ministry and, if needed, the Union Cabinet.

In fact, earlier this month, the DAC had cleared emergency procurement powers worth ₹40,000 crore, underlining the urgency in enhancing operational readiness.


Strengthening Border Security After Operation Sindoor

The procurement push follows Operation Sindoor, a high-precision counter-terrorism action launched by the Indian Armed Forces in response to a terrorist attack in Pahalgam that resulted in 26 civilian casualties. Operation Sindoor saw:

  • Use of indigenous drones

  • Deployment of layered air defence systems

  • Employment of electronic warfare tools

The success of this operation has been touted as a milestone in India’s self-reliance in military technology, showcasing the capability to neutralise threats without crossing military red lines.


Bharat Dynamics Ltd: A Pillar of India’s Missile Ecosystem

BDL, a key player under the Make in India initiative, is poised to benefit from this deal. It manufactures a wide range of missile systems for the Indian Armed Forces and has earned a reputation for high-precision delivery and rapid scaling of production.

Key strengths of BDL include:

  • Order book of ₹3,110 crore

  • Estimated revenue growth of 28-30% in FY25

  • Indigenisation of critical components to counter supply chain disruptions

  • Plans to double production in 3-5 years, triple in a decade

  • Expanding manufacturing footprint to cater to both domestic and export markets

This positions BDL as a central pillar in India’s defence modernisation plans.


Invar Missiles: Precision and Power

The Invar missile system is known for:

  • High hit probability

  • Fire-and-forget capability

  • Effective range and penetration power

Specifically engineered to defeat modern armour systems, these missiles enhance the lethality of India’s T-90 tanks, making them formidable assets in any high-intensity conflict scenario.


Strategic Significance of Indigenous Procurement

This move ties into the government’s broader push for Atmanirbhar Bharat (self-reliant India) in defence manufacturing. By prioritising indigenous production over imports, India not only:

  • Enhances operational autonomy

  • Reduces foreign dependence

  • Supports domestic industry and employment

But also improves logistical agility in wartime by shortening supply chains and ensuring timely availability of critical weapon systems.


Impact on BDL's Financial Outlook and Capacity Expansion

The proposed deal is expected to further strengthen BDL’s financial position. With new contracts and increased government backing, BDL is well on track to:

  • Expand its export portfolio

  • Enter new defence technology segments

  • Invest in automation and R&D

These efforts are aimed at sustaining long-term competitiveness and aligning with India’s ambitions to become a global defence hub.


Conclusion: A Timely Strategic Move

The proposed Invar missile procurement is more than just a routine purchase — it is a strategic decision aligned with:

  • Post-Operation Sindoor preparedness

  • Border tensions with adversaries

  • Make in India defence goals

  • Technological upgradation of armed forces

As the financial vetting nears completion, Bharat Dynamics Ltd is expected to play a central role in executing this high-impact deal, reinforcing its stature as a backbone of India’s missile power.

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