The Indian Army has finalised a significant procurement deal under its emergency powers, signing a ₹293 crore contract with Pune-based private defence manufacturer NIBE Limited.

This agreement, announced on 3 January 2026, involves the supply of the advanced Suryastra Multi-Calibre Rocket Launcher System, developed in collaboration with Israel's Elbit Systems. The system promises to bolster the Army's artillery capabilities with deep-strike precision.

NIBE Limited confirmed the development in a letter to the Bombay Stock Exchange and National Stock Exchange. The contract covers the manufacturing and supply of ground equipment, accessories, electronic support packages (ESP), and ammunition for a universal rocket launcher. Crucially, it integrates multiple rocket types, enabling strikes at long ranges of 150 km and 300 km, for a total value of ₹292.69 crore inclusive of taxes and duties.

Suryastra represents India's first indigenously produced universal multi-calibre rocket launcher. It excels in precision surface-to-surface strikes, with a circular error probable (CEP) of less than five metres as demonstrated in trials. The system's versatility allows it to engage multiple targets simultaneously across varying ranges, marking a leap in operational effectiveness.

A standout feature is its compatibility with loitering munitions, extendable up to 100 km. This enhances tactical flexibility, permitting the launcher to switch between conventional rockets and kamikaze drones for diverse mission profiles. Such multi-domain integration aligns with modern warfare demands, particularly along contested borders.

The procurement falls under the Army's emergency procurement (EP) powers, activated by the Defence Acquisition Council (DAC) on 26 December 2025. These provisions permit the armed forces to acquire systems worth up to ₹300 crore without additional clearances, provided deliveries commence within six months and conclude within one year. This expedited route addresses urgent operational gaps.

The deal stems from a Technology Collaboration Agreement (TCA) signed in July 2025 between NIBE and Elbit Systems. This partnership facilitates domestic production of the Suryastra (or SURYA) system, achieving a 300 km strike capability for the first time in India. It underscores the government's Aatmanirbhar Bharat initiative, promoting self-reliance in high-precision defence manufacturing.

For the Indian Army, Suryastra significantly enhances deep-strike artillery firepower. Operating in theatre-level conflicts, especially in high-altitude or rugged terrains like those facing China and Pakistan, it provides standoff capabilities beyond current systems. The 300 km range outmatches many regional peers, deterring aggression through superior reach.

Integration with existing artillery doctrines, such as the Field Artillery Rationalisation Plan, will be seamless. The multi-calibre design allows interoperability with rockets of 122 mm, 130 mm, 227 mm, and larger calibres, reducing logistical burdens. Precision-guided munitions ensure minimal collateral damage, vital for counter-battery roles and suppression of enemy air defences.

This acquisition complements ongoing indigenous efforts, notably the Defence Research and Development Organisation's (DRDO) Pinaka rocket system. DRDO Chairman Samir V. Kamat recently announced production of Pinaka variants with 120 km and 300 km ranges, slated for induction in three to five years. Suryastra thus bridges immediate needs while Pinaka matures.

NIBE Limited's role highlights the rising prowess of India's private defence sector. As a BSE-listed entity, its stock likely benefited from the announcement, reflecting investor confidence in defence indigenisation. Collaborations like this with global majors transfer critical technologies, fostering local R&D and export potential.

Strategically, Suryastra bolsters India's deterrence posture in South Asia. Amid tensions along the Line of Actual Control and Line of Control, extended-range systems neutralise threats deep in adversary territory, including command nodes and logistics hubs. Loitering munitions add persistent surveillance and strike options, enhancing battle management.

Emergency procurements like this exemplify adaptive policymaking. Extended by DAC until 15 January 2026, EP powers have enabled rapid fielding of capabilities, from drones to artillery. With deliveries expected by mid-2027, Suryastra could enter service amid evolving geopolitical dynamics.

Challenges remain, including technology absorption and ammunition production scaling. Yet, NIBE's track record and Elbit's expertise mitigate risks. Successful induction could pave the way for follow-on orders, positioning India as a rocket artillery exporter.

In summary, the Suryastra contract not only fortifies the Indian Army's firepower but also advances national self-reliance goals. It signals a maturing defence ecosystem, blending private innovation with strategic partnerships for superior warfighting edge.

IDN (With Agency Inputs)

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