Bharat Forge Ltd has secured its position as the lowest bidder for a significant contract worth over ₹6,000 crore for the procurement of 307 Advanced Towed Artillery Gun Systems (ATAGS) for the Indian Army. The contract is set to be divided between Bharat Forge and Tata Advanced Systems Ltd (TASL), with a distribution ratio of 60:40. Both companies are recognized as development partners of the ATAGS, which was initially developed by the Defence Research and Development Organisation (DRDO).
In March 2023, the Ministry of Defence granted Acceptance of Necessity (AoN) for the procurement of the 155mm/52cal ATAGS, including Gun Towing Vehicles (GTVs), meant to replace the aging fleet of Bofors guns currently in use by the Indian Army.
Bharat Forge announced on Tuesday that the ongoing contract negotiation procedure is in progress following the completion of the due technical evaluation and the opening of commercial bids. In contrast, TASL has not provided specific updates regarding its bidding status, with sources merely indicating that price negotiations are ongoing and that details will be disclosed once the deal is finalized.
According to knowledgeable sources, the Contract Negotiation Committee (CNC) established by the Ministry of Defence has concluded the final round of contract negotiations. As Bharat Forge has emerged as the lowest bidder (L1), it is set to receive 60 percent of the contract value, translating to over ₹4,000 crore. Meanwhile, TASL will be responsible for manufacturing 40 percent of the 307 guns, amounting to approximately ₹2,000 crore.
Bharat Forge has indicated a commitment to updating the stock exchange regarding the outcome of the negotiation process, which is anticipated to conclude before the end of the current financial year 2024-25.
Prior to the bidding process, the Indian Army conducted extensive trials in diverse conditions, including desert and high-altitude environments, to evaluate the capabilities of the towed guns. In addition to domestic procurement, India has already exported ATAGS to Armenia, with interest from several other countries also reported.
The developments highlight the strengthening of India’s defense procurement landscape and the focus on enhancing the operational capabilities of the Indian Army with advanced artillery systems.
