Adani emerges key Russia defence partner in India; HAL, BDL on board

Adani is in talks with Russian manufacturers for collaboration on more advanced air defence weapons like the Pantsir for co-production in India

New Delhi: Russia is partnering with private sector firm Adani Defence & Aerospace for major defence deals in India, while deepening collaboration with state-run manufacturers such as Hindustan Aeronautics Ltd (HAL) and Bharat Dynamics Ltd (BDL). Several contracts have been signed in the past two years, while some are in advanced stages of procurement. The focus is on technology transfer and co-production, in line with India's defence acquisition rules.

Adani Defence, which currently has partnerships with Israeli drone and small arms manufacturers, is entering the air defence domain through alliances with Russian companies. Air defence has emerged as a major modernisation requirement of the Indian military in the light of the ongoing global conflicts and the growing use of drones. HAL is working closely with Russian partners for an upcoming upgradation programme of the Indian Air Force's fleet of Su-30MKI fighter jets. While the majority of the work will be handled by HAL, Russian firms will provide technical consultancy.

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BDL is working on a contract to manufacture long-range air-to-air missiles that can be fitted onboard the Su-30MKI fleet as well as MiG-29s operated by the IAF. This would be a rare instance of producing a Russian-origin air-to-air missile manufactured in India, with technology transfer.

Adani Defence has meanwhile focused on air defence weaponry, and the company has been awarded at least six contracts in the past two years for the supply of Igla-S man-portable air defence missiles to the three armed forces.

The contracts were signed under two tranches of the Indian military's emergency procurement clause, enabling them to make quick purchases of urgently needed weapons, with a cap of ₹300 crore per contract. All six contracts are for the same type of missile, with Adani signing up with Russian company SpecTech LLC for technical collaboration.

Adani is also in the final stages of a larger, ₹1,800 crore contract for a more advanced version of the shoulder-fired missile, the 9K333 Verba. Adani Defence was nominated for the deal last month, with the procurement being processed as a single vendor contract and exemption from competitive bidding. The plan is to manufacture the missiles in India, given large upcoming requirements of the armed forces running into several thousands.

Adani is in talks with Russian manufacturers for collaboration on more advanced air defence weapons like the Pantsir for co-production in India. The company last week inked a long-term deal for supply of ammunition to Indo-Russia Rifles Pvt Ltd besides manufacturing parts for AK-203 rifles.

Also Read: HAL partners with Adani Defence, BEML to make Prachand Combat Helicopter fuselages

Two major Russian proposals however failed to garner much favour among the Indian armed forces. The first is for the sale and co-production of the Su-57 fighter jet, touted as fifth- generation by Moscow. The IAF has continued to reiterate its firm commitment to the acquisition of Rafale fighter jets, followed by the indigenous Advanced Multi Role Combat Aircraft.

Another proposal still to find takers is the sale of three refurbished EKM class diesel-electric submarines to replace the Kilo class boats that are slowly being phased out by the Navy. Russia's proposal is to refurbish three existing hulls to the latest standards, but doubts exist on its actual ability to deliver, given the ongoing war with Ukraine and its strain on its own defence industry.

The Indian Navy is still awaiting from Russia a Chakra-class nuclear attack submarine, the deal for which was signed in 2019, and was due for delivery in 2025.