Ministry Of Defence Signs Rs 7,628 Cr Deal With L&T For Advanced K9 VAJRA-T Artillery Guns; Stock In Focus

The Ministry of Defence (MoD) on Friday, December 20, signed a Rs 7,628.70-crore contract with Larsen & Toubro (L&T) for the procurement of 155 mm/52 calibre K9 VAJRA-T self-propelled tracked artillery guns. These state-of-the-art guns, procured under the 'Buy (Indian)' category, are set to enhance the Indian Army's firepower, and operational readiness.

The K9 VAJRA-T artillery guns are equipped with cutting-edge technology designed for high mobility and precision targeting. They are capable of delivering long-range lethal firepower with remarkable accuracy, even in challenging conditions such as sub-zero temperatures at high altitudes. This versatility makes them a critical addition to India's defence arsenal, particularly for deployment along the strategically sensitive Line of Actual Control (LAC).

"The K9 VAJRA-T guns, with their cross-country mobility and precision capabilities, will significantly enhance the Indian Army's firepower, enabling deeper strikes in all terrains," the Ministry of Defence stated.

This procurement aligns with the government's 'Make in India' initiative, promoting self-reliance in defence manufacturing. The project will involve over nine lakh man-days of employment over four years, with active participation from Indian industries, including Micro, Small, and Medium Enterprises (MSMEs).

"The K9 VAJRA-T project is a proud flag-bearer of 'Aatmanirbhar Bharat' and underscores the government's commitment to modernising India's defence sector while generating substantial employment opportunities," the MoD added.

It is understood that approximately 100 K9 VAJRA-T guns will be procured under this contract, with many intended for deployment along the LAC. Larsen & Toubro, a leading Indian multinational, has been a key player in defence manufacturing and has been instrumental in advancing indigenous defence production.

Shares of L&T closed at Rs 3,630.60 on the Bombay Stock Exchange (BSE), down by Rs 82.35 or 2.22% on Friday (December 20). Despite the dip, the long-term outlook for the company remains positive, with the defence sector poised for significant growth.

The K9 VAJRA-T procurement marks a significant step in the Indian Army's artillery modernisation efforts. Moreover, the project's employment generation potential is noteworthy. The involvement of Indian industries, particularly MSMEs, will stimulate the defence manufacturing ecosystem and contribute to economic growth.