India inks historic Rs 62,000-Cr deal to acquire 156 indigenous ‘Prachand’ helicopters

New Delhi: The Defence Ministry has finalised a deal worth Rs 62,700 crore for procuring 156 Light Combat Helicopters (LCH) ‘Prachand’ from Hindustan Aeronautics Ltd (HAL), shortly after the acquisition received approval from the Prime Minister-led Cabinet Committee on Security (CCS). The move aims to enhance the military’s combat capabilities.  

The LCH ‘Prachand’ is India's first homegrown combat helicopter, designed to operate at altitudes exceeding 5,000 metres. Following the CCS’s approval, the defence ministry signed two agreements with HAL for the procurement.  

Defence Minister Rajnath Singh stated that the CCS had cleared the purchase of 156 LCH units from HAL, worth over ₹62,500 crore.  

"This decision marks a major boost to India's combat capabilities and self-reliance in defence," he said on X.  

Highlighting the helicopter’s capabilities, he noted that ‘Prachand’ is equipped to operate in high-altitude terrains and execute precision strikes on elevated targets.  

"The Cabinet's decision taken today will create more than 8,500 jobs. This is indeed a proud moment for India's Make in India journey. I thank PM Narendra Modi for taking this important decision," he added.  

According to the defence ministry, the first contract involves the supply of 66 helicopters to the Indian Air Force (IAF), while the second covers 90 helicopters for the Indian Army.  

A statement from the ministry confirmed that the contracts, signed on March 28, include training and associated equipment, with the total cost of ₹62,700 crore excluding taxes.  

Developed by HAL, the twin-engine 5.8-tonne LCH is equipped with advanced weaponry and is capable of neutralising enemy tanks, bunkers, drones, and other targets in high-altitude environments.  

The aircraft incorporates stealth features, robust armour protection, and night attack capabilities, making it fully operational even in extreme conditions such as those in Siachen, the world's highest battlefield.  

The ministry stated that deliveries of the helicopters will begin in the third year and continue over the next five years.  

“These helicopters will significantly enhance the combat potential of the armed forces at high altitudes,” the statement read.  

The project has a strong indigenous component, with over 65% of the helicopter’s parts planned to be sourced domestically during production. More than 250 Indian companies, mostly micro, small, and medium enterprises (MSMEs), will be involved, generating over 8,500 direct and indirect jobs.  

Additionally, the defence ministry signed an agreement with Metrea Management for the "wet-leasing" of a flight refuelling aircraft (FRA) to provide air-to-air refuelling training for pilots in the IAF and Indian Navy.  

Metrea is set to deliver the KC-135 FRA within six months, marking the first instance of the IAF acquiring an FRA through wet leasing.