New Delhi, October 15, 2026 — The Ministry of Defence on Thursday signed contracts worth approximately ₹4,106 crore for the acquisition of a dedicated communication satellite capability for the Indian Air Force and Varunastra heavyweight torpedoes for the Indian Navy.
The contracts were signed in New Delhi in the presence of Shri A. Anbarasu, Additional Secretary and Director General (Acquisition), Department of Defence. Both agreements advance domestic defence manufacturing and self-reliance under the government’s Aatmanirbhar Bharat and Make in India initiatives.
GSAT-7C Communication Satellite for the Indian Air Force
The Ministry awarded a ₹2,563 crore contract to NewSpace India Limited (NSIL), Bengaluru, the commercial arm of the Department of Space, for the GSAT-7C satellite capability. The satellite is indigenously designed, developed, and manufactured in India. It is intended to enhance secure, resilient, and seamless communication capabilities for Indian Air Force assets, thereby strengthening operational effectiveness.
GSAT-7C will be the Indian Air Force’s second dedicated communication satellite. The first, GSAT-7A, was launched in December 2018. The new satellite is expected to support connectivity among airbases, ground radars, airborne early warning platforms, and other assets, including beyond line-of-sight operations.
Varunastra Heavyweight Torpedoes for the Indian Navy
A second contract, valued at ₹1,543 crore, was signed with Bharat Dynamics Limited (BDL), Hyderabad, for the supply of Varunastra heavyweight torpedoes. Varunastra is an indigenous ship-launched anti-submarine torpedo developed by the Naval Science and Technological Laboratory (NSTL) of the Defence Research and Development Organisation (DRDO). It features advanced manoeuvring capabilities that enable it to engage enemy submarines at long ranges, thereby enhancing the Indian Navy’s anti-submarine warfare capability.
According to manufacturer specifications, Varunastra has a length of 7.780 metres, a diameter of 533.4 mm, and a combat weight of approximately 1,850 kg (exercise version approximately 1,605 kg). It is electrically propelled using silver-oxide zinc batteries and contra-rotating propellers, with selectable speeds of 27 and 40 knots. It operates at depths ranging from 8 metres to 600 metres and has a range of around 40 kilometres. The torpedo was first inducted into the Indian Navy in 2016 and is designed to counter submarines in both shallow and deep waters, including in environments with acoustic countermeasures.
BDL has indicated that the order is to be completed within 42 months. The company has previously produced and delivered Varunastra torpedoes to the Navy under earlier contracts.
Strategic Significance
The two contracts address distinct operational requirements: secure space-based communications for the Indian Air Force and strengthened underwater combat capability for the Indian Navy. They also reinforce indigenous development of critical technologies by involving established Indian entities — NSIL in the space sector and BDL, working with NSTL, in the naval weapons domain.
The Defence Acquisition Council had earlier accorded Acceptance of Necessity for the GSAT-7C programme in November 2021. The present contract value reflects the final negotiated cost for the dedicated communication satellite capability.
These procurements form part of the ongoing effort to build sovereign military capabilities in space and undersea domains while reducing dependence on foreign suppliers for strategically important systems.
