MoD Signs Rs 5,083 Crore Defence Deals: ALH Mk-III for Coast Guard and Shtil Missiles

The contract for six ALH Mk-III (MR) helicopters has been signed with Hindustan Aeronautics Limited (HAL), Bengaluru under the Buy (Indian–Indigenously Designed, Developed and Manufactured) category.

In a significant boost to India’s maritime security architecture and defence preparedness, the Ministry of Defence on March 03, 2026 signed contracts worth Rs 5,083 crore for the acquisition of six Advanced Light Helicopters (ALH) Mk-III (Maritime Role) for the Indian Coast Guard and Surface-to-Air Vertical Launch (VL) Shtil missiles for the Indian Navy.

The agreements were formalized at South Block, New Delhi, in the presence of Defence Secretary Shri Rajesh Kumar Singh, underscoring the strategic importance of the procurements at a time when India is reinforcing its maritime capabilities amid evolving regional security dynamics.

ALH Mk-III (Maritime Role): Strengthening Coastal Vigilance and Maritime Security

The contract for six ALH Mk-III (MR) helicopters has been signed with Hindustan Aeronautics Limited (HAL), Bengaluru under the Buy (Indian–Indigenously Designed, Developed and Manufactured) category. Valued at Rs 2,901 crore, the agreement includes operational role equipment, an engineering support package, and performance-based logistics support.

The ALH Mk-III (Maritime Role) is a twin-engine helicopter platform incorporating advanced avionics and state-of-the-art systems that significantly surpass the capabilities of currently operated airborne platforms in the Coast Guard fleet. Designed for both shore-based operations and embarkation on ships at sea, these helicopters are capable of executing a broad spectrum of maritime missions.

Their operational profile includes maritime surveillance, search and rescue (SAR), coastal security operations, protection of offshore assets, and environmental monitoring. The induction of these helicopters is expected to significantly enhance the Indian Coast Guard’s ability to safeguard artificial islands, offshore installations, and energy infrastructure, while also strengthening protection for fishermen and the marine ecosystem.

Beyond operational capability, the project carries substantial economic and industrial implications. The procurement envisages participation from more than 200 Micro, Small and Medium Enterprises (MSMEs), reinforcing the domestic defence manufacturing ecosystem. It is projected to generate approximately 65 lakh man-hours of employment, contributing meaningfully to skill development and industrial capacity building.

The contract represents a tangible reaffirmation of the Government’s commitment to Aatmanirbhar Bharat and the Make-in-India initiative. By prioritizing indigenous design and manufacturing, the deal further consolidates India’s drive toward strategic autonomy in critical defence technologies.

Surface-to-Air Vertical Launch – Shtil Missiles: Reinforcing Naval Air Defence

Complementing the helicopter acquisition, the Ministry also signed a Rs 2,182 crore contract with JSC Rosoboronexport of the Russian Federation for the procurement of Surface-to-Air Vertical Launch (VL) Shtil missiles, along with associated missile holding frames.

The VL-Shtil missile system is designed to provide robust air defence capability to frontline Indian Navy warships. It enables rapid-reaction, all-weather engagement of diverse aerial threats, including aircraft, anti-ship missiles, and other airborne platforms in high-threat maritime environments.

By enhancing the layered air defence architecture onboard naval platforms, the system improves survivability and operational readiness in contested sea zones. The vertical launch configuration allows for swift response times and efficient threat neutralization, which is critical in modern naval warfare scenarios characterized by saturation missile attacks and complex threat matrices.

The acquisition comes at a time when the Indian Navy is expanding its blue-water operational footprint and strengthening fleet air defence capabilities across multiple theatres.

Strategic Significance and India–Russia Defence Ties

While the ALH Mk-III contract reflects India’s increasing self-reliance in defence manufacturing, the Shtil missile deal underscores the enduring and time-tested defence partnership between India and Russia. Rooted in decades of strategic cooperation and mutual trust, this partnership continues to play a key role in India’s military modernization efforts.

Together, the twin procurements signal a balanced approach—deepening indigenous capability while sustaining critical international defence collaborations. They also reinforce India’s broader maritime security strategy, which prioritizes coastal surveillance, offshore asset protection, and fleet air defence in the Indo-Pacific region.

With the signing of these contracts, India takes another decisive step toward enhancing operational readiness across its maritime forces, strengthening its domestic defence industry, and consolidating its position as a responsible and capable maritime power.