MoD Signs ₹6,900 Cr Deal with Tata, Bharat Forge to Boost Army Artillery

The Ministry of Defence (MoD) has completed agreements with Bharat Forge Limited and Tata Advanced Systems Limited to improve the artillery capabilities of the Indian Army. These agreements, valued at around Rs 6,900 crore, will equip the Army with 155mm/52 caliber Advanced Towed Artillery Gun Systems (ATAGS) and 6x6 High Mobility Vehicle Gun Towing Vehicles. The signing event occurred on 26 March 2025 in New Delhi, attended by Defence Secretary Rajesh Kumar Singh.

With this acquisition, the total capital contracts of the MoD for the financial year 2024-25 have amounted to Rs 1.40 lakh crore. The occasion also featured the Defence Secretary honoring the Project Director of ATAGS from the Defence Research and Development Organisation’s (DRDO) Armament Research and Development Establishment in Pune, acknowledging his contribution to the project's success.

The ATAGS aims to substitute the Army’s outdated artillery guns with a more sophisticated and efficient system. Able to hit targets as far as 48 kilometres away, these artillery pieces will greatly enhance the Army's firepower and accuracy. As an element of a broader initiative to improve mobility, these firearms are also being transformed into Mounted Gun Systems (MGS) by fitting them onto trucks. The trials for MGS are anticipated to finish by 2026.

This acquisition marks the first significant occurrence of the private sector providing towed artillery to the Army, a key development in India’s defense manufacturing industry. Bharat Forge will produce 60% of the firearms, whereas Tata Advanced Systems Limited will create the other 40%.

The Cabinet Committee on Security (CCS), under Prime Minister Narendra Modi's leadership, sanctioned the Rs 7,000 crore ATAGS agreement. The Army has been working on upgrading its artillery using homegrown systems, and this sanction clears the path for the procurement of 307 ATAGS guns.