India signs ₹4,106 crore deal for IAF GSAT-7C satellite, Navy Varunastra torpedoes
New Delhi, October 15, 2026 — The Ministry of Defence on Thursday signed contracts worth about ₹4,106 crore to acquire a dedicated communication satellite capability for the Indian Air Force and Varunastra heavyweight torpedoes for the Indian Navy, in a fresh procurement push aimed at strengthening indigenous defence manufacturing.
The agreements were signed in New Delhi in the presence of Shri A. Anbarasu, Additional Secretary and Director General (Acquisition), Department of Defence. The contracts align with the government’s Aatmanirbhar Bharat and Make in India initiatives, both of which are intended to build domestic capability and reduce dependence on imported military systems.
GSAT-7C satellite contract for the Air Force
Of the two deals, the larger one is a ₹2,563 crore contract awarded to NewSpace India Limited (NSIL), Bengaluru, the commercial arm of the Department of Space, for the GSAT-7C programme. The satellite is indigenously designed, developed and manufactured in India, and is meant to provide the Indian Air Force with secure, resilient and seamless communication support across its operational network.
GSAT-7C will be the Air Force’s second dedicated communication satellite. Its first such platform, GSAT-7A, was launched in December 2018. The new satellite is expected to improve connectivity between airbases, ground radars, airborne early warning platforms and other assets, including for beyond line-of-sight operations, which are critical for coordinated military command and control.
The Defence Acquisition Council had accorded Acceptance of Necessity for the GSAT-7C programme in November 2021. The latest contract reflects the final negotiated cost for the dedicated communication satellite capability.
Varunastra torpedoes for the Navy
The second contract, valued at ₹1,543 crore, has been signed with Bharat Dynamics Limited (BDL), Hyderabad, for the supply of Varunastra heavyweight torpedoes to the Indian Navy. 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).
Designed for anti-submarine warfare, the torpedo features advanced manoeuvring capabilities that allow it to engage enemy submarines at long ranges. The system is intended to enhance the Navy’s ability to operate against submarine threats in both shallow and deep waters, including environments where acoustic countermeasures are present.
According to manufacturer specifications, Varunastra is 7.780 metres long and 533.4 mm in diameter. It has a combat weight of about 1,850 kg, while the exercise version weighs approximately 1,605 kg. The torpedo is electrically propelled using silver-oxide zinc batteries and contra-rotating propellers, and can operate at selectable speeds of 27 and 40 knots. It has a depth range from 8 metres to 600 metres and an operational range of around 40 kilometres.
Varunastra was first inducted into the Indian Navy in 2016. BDL has said the order is to be completed within 42 months, and the company has previously produced and delivered the torpedoes to the Navy under earlier contracts.
Broader strategic context
Taken together, the two procurement contracts serve different but complementary operational needs: one supports secure space-based communications for the Air Force, while the other strengthens the Navy’s underwater combat capability. Both deals also draw on Indian entities with established roles in their respective sectors — NSIL in space and BDL, working with NSTL, in naval weapons development and production.
The contracts add to the ongoing effort to build sovereign military capability in space and undersea domains, while progressively reducing reliance on foreign suppliers for strategically important systems.
