Solar Defence wins ₹239 crore MoD contract for Multi Mode Hand Grenades

Team Finance Saathi

    04/Mar/2025

What's covered under the Article:

  1. Solar Defence & Aerospace Ltd wins ₹239 crore Ministry of Defence contract for Multi Mode Hand Grenades.
  2. The order is part of India's push for indigenous defence manufacturing under Make in India.
  3. The contract will be fulfilled within a year, strengthening domestic defence production.

Solar Defence and Aerospace Limited, a wholly owned subsidiary of Solar Industries India Limited, has secured a ₹239 crore contract from the Ministry of Defence (MoD), Government of India. This contract entails the supply of Multi Mode Hand Grenades (MMHG) to the Indian Armed Forces, to be delivered over a one-year period.

This significant development strengthens India's commitment to indigenous defence manufacturing under the Make in India initiative. The order highlights the growing emphasis on self-reliance in defence production and the Government of India's efforts to equip the armed forces with advanced weaponry while reducing dependency on imports.

Solar Defence’s Expanding Role in Defence Manufacturing

Solar Defence and Aerospace Ltd (formerly known as Economic Explosives Limited) is a key player in India’s ammunition and defence technology sector. The company has a strong track record of supplying critical defence products, including high-energy explosives, warheads, and advanced ordnance systems. The latest contract for Multi Mode Hand Grenades reaffirms its position as a trusted partner in India’s defence procurement ecosystem.

The Multi Mode Hand Grenade (MMHG) is an advanced version of the traditional hand grenade, offering both defensive and offensive capabilities. It has been developed to replace the Mills Bomb Grenade currently used by the Indian Army. The MMHG provides enhanced safety, reliability, and efficiency, making it a vital addition to India's military arsenal.

Key Features of the ₹239 Crore Contract

  • Awarding Entity: Ministry of Defence, Government of India
  • Nature of Order: Domestic procurement under Make in India
  • Product: Multi Mode Hand Grenades for the Indian Armed Forces
  • Contract Value: ₹239 Crores
  • Execution Timeline: 1 year from the date of signing

The contract comes at a time when the Indian Government is pushing for self-reliance in the defence sector. It aligns with India’s Defence Acquisition Procedure (DAP) 2020, which prioritizes domestic procurement and reduces dependence on foreign imports for critical defence supplies.

Importance of Multi Mode Hand Grenades in Modern Warfare

The Multi Mode Hand Grenade (MMHG) is a significant upgrade over traditional grenades. Unlike conventional models, which are used primarily in offensive or defensive scenarios, the MMHG can be adapted for multiple combat situations.

Features of the Multi Mode Hand Grenade:

  1. Dual Mode Functionality – Can be used in both offensive and defensive operations.
  2. Enhanced Safety Mechanism – Designed with modern safety features to prevent accidental detonation.
  3. Higher Lethality – Provides greater fragmentation and impact in combat scenarios.
  4. Lightweight Design – Ensures better handling and ease of use for soldiers.
  5. Indigenous Manufacturing – Developed as part of India’s Make in India initiative, reducing reliance on imports.

The introduction of MMHG strengthens India’s tactical capabilities, providing soldiers with a more effective and versatile weapon for battlefield situations.

Boost for Indian Defence Industry

With this contract, Solar Industries India Limited further consolidates its role in India's expanding defence sector. Over the past few years, the company has secured multiple contracts for explosives, propellants, and defence ordnance systems, significantly contributing to India's defence self-sufficiency.

The Indian Government has been actively encouraging private sector participation in defence production. The latest order aligns with the Defence Production and Export Promotion Policy (DPEPP) 2020, which aims to enhance local manufacturing capabilities and increase defence exports.

Government’s Push for Indigenous Defence Manufacturing

India has been steadily increasing its investment in domestic defence manufacturing. Under the leadership of the Ministry of Defence, several key initiatives have been launched to promote self-reliance in critical defence technologies.

Some notable efforts include:

  • Indigenisation of Defence Equipment: The Government has listed multiple defence items under the “Positive Indigenisation List”, restricting their imports to promote local manufacturing.
  • Increased Budget Allocation: A significant portion of the defence budget is now allocated to domestic procurement to encourage Indian companies.
  • Public-Private Partnerships: The Government is fostering collaborations between public and private sector firms to boost production efficiency and innovation.

With a ₹239 crore contract now in place, Solar Defence and Aerospace Ltd is set to play a pivotal role in India's growing defence manufacturing ecosystem.

Future Outlook for India’s Defence Sector

India’s defence manufacturing industry is witnessing unprecedented growth, driven by strategic government policies and technological advancements. The latest contract awarded to Solar Defence & Aerospace Ltd is a testament to the confidence in domestic defence firms.

In the coming years, the country is expected to:

  • Increase defence exports, making India a key player in the global arms market.
  • Expand research and development in advanced ammunition, missiles, and combat technologies.
  • Enhance collaborations with global defence giants for technology transfers and joint production.

This contract marks another milestone in India's journey towards self-reliance in defence manufacturing, ensuring that the armed forces receive world-class equipment developed within the country.

With the growing demand for advanced weaponry, Solar Industries India and its subsidiary Solar Defence & Aerospace Ltd are set to contribute significantly to India’s defence modernization efforts, reinforcing the nation’s strategic capabilities in modern warfare

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