HAL Seals Historic Rs 62,000 Crore Deal for LCH Prachand

India’s defense industry is soaring to new heights, with record-breaking procurement deals strengthening the country’s military might.

The latest milestone in this journey is the Ministry of Defence’s (MoD) historic contract for 156 Light Combat Helicopters (LCH) Prachand, a move that not only enhances national security but also propels India’s aerospace industry forward.

With increasing focus on self-reliance, cutting-edge military technology, and border security, this deal marks a pivotal moment for India’s armed forces.

India’s Biggest Ever Defence Helicopter Procurement

On March 28, 2025, the Ministry of Defence signed two contracts with Hindustan Aeronautics Limited (HAL) to procure 156 LCH Prachand helicopters along with training and associated equipment. The total deal, valued at Rs. 62,700 crore (excluding taxes), includes:

• 66 LCHs for the Indian Air Force (IAF)
• 90 LCHs for the Indian Army

The deliveries will begin in the third year and will be completed over the following five years. The addition of these advanced helicopters will significantly boost the combat capability of the armed forces, particularly in high-altitude warfare zones such as Siachen Glacier and Eastern Ladakh.

Indigenous Combat Helicopter with High-Altitude Capabilities

LCH Prachand is India’s first indigenously designed and developed attack helicopter capable of operating at altitudes above 5,000 meters. This capability makes it the only helicopter in the world that can perform high-altitude missions effectively.

The LCH boasts a top speed of 288 kmph, a combat range of 500 km, and an operational ceiling of 21,000 feet. It is armed with air-to-air and air-to-ground missiles, a 20mm turret gun, and 70mm rockets, making it highly effective in close air support, anti-tank warfare, and reconnaissance missions.

The Army variant will be equipped with Helina missiles, while the IAF version will feature Dhruvastra missiles, ensuring superior firepower and battlefield mobility. These helicopters are designed for close air support, anti-tank warfare, and reconnaissance missions, giving India a strategic advantage in challenging terrains.

Boost to ‘Make in India’ and Indigenous Defence Industry

This landmark contract is a significant step towards reducing India’s dependence on foreign military imports. The LCH program involves over 250 domestic companies, primarily MSMEs, and is expected to create over 8,500 direct and indirect jobs. With an overall indigenous content target of over 65%, this procurement strengthens India’s defense manufacturing ecosystem.

Additionally, private defense firms such as Bharat Forge and Tata Group will collaborate with HAL in manufacturing critical components, further reinforcing the Atmanirbhar Bharat initiative.

Electronic Warfare & Advanced Protection Systems

To enhance survivability against enemy threats, HAL has signed an MoU with SAAB to integrate the LWS-310 laser warning system into the LCH. This system will improve the helicopter’s ability to evade radar detection and missile attacks.

India’s First Wet-Leased Flight Refueling Aircraft (FRA)

In addition to the LCH deal, the MoD signed a contract with Metrea Management for the wet leasing of a KC-135 Flight Refueling Aircraft (FRA) to provide air-to-air refueling training for IAF and Indian Navy pilots. This is the first time the IAF is wet-leasing an FRA, and the aircraft is expected to be operational within six months.

Record-Breaking Defence Procurement Year

With the signing of these three contracts, the total number of defense contracts signed during 2024-25 has reached 193, with an overall contract value exceeding Rs 2,09,050 crore—the highest ever in India’s history and nearly double the previous record. Out of these, 92% (177 contracts) are with domestic industries, amounting to Rs 1,68,922 crore (81%) of the total value.