Bharat Forge negotiating with MoD for ATAGS

New Delhi: Bharat Forge has recently entered into contract negotiations with the Ministry of Defence (MoD) for the supply of the Advanced Towed Artillery Gun System (ATAGS). This development marks a significant milestone in India’s efforts to enhance its indigenous defence manufacturing capabilities.

The ATAGS is a 155 mm/52 calibre towed artillery system developed by the Defence Research and Development Organisation (DRDO) in collaboration with Bharat Forge and Tata Advanced Systems Limited (TASL). The project commenced in 2013 with the aim of replacing older artillery systems in the Indian Army, particularly the Bofors guns.

On November 19, 2024, it was reported that Bharat Forge emerged as the lowest bidder for a contract valued at over ₹6,000 crore for 307 units of ATAGS. The contract will be divided between Bharat Forge (60%) and TASL (40%), with Bharat Forge expected to receive more than ₹4,000 crore from this deal. The negotiations follow an Acceptance of Necessity issued by the MoD in March 2023, which authorized the procurement of these artillery systems.

The current negotiations are being conducted by a Contract Negotiation Committee (CNC) formed by the MoD, which has completed its technical evaluations and opened commercial bids. Bharat Forge anticipates concluding these negotiations by the end of the financial year 2024-25.

The ATAGS project is a crucial component of India’s “Make in India” initiative, aimed at boosting domestic defence manufacturing. By developing indigenous solutions like ATAGS, India seeks to reduce reliance on foreign suppliers while enhancing its military capabilities. The successful implementation of this contract is expected to not only strengthen Bharat Forge’s position in the defence sector but also pave the way for future export opportunities as other countries express interest in acquiring this advanced artillery system.

(Defence Watch– India’s Defence News centre that places the spotlight on Defence Manufacturing, Defence Technology, Strategy and Military affairs is on Twitter. Follow us here and stay updated.)