Ministry of Defence signs ₹2,500 crore contracts for Nag Missile System and 5,000 Light Vehicles – CNBC TV18

Ministry of Defence signs ₹2,500 crore contracts for Nag Missile System and 5,000 Light Vehicles – CNBC TV18

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The Ministry of Defence has signed contracts for the procurement of the Nag Missile System (NAMIS) Tracked version and approximately 5,000 Light Vehicles for the Armed Forces at a total cost of ₹2,500 crore. The agreements were inked under the Buy (Indian-Indigenously Designed Developed and Manufactured) category in the presence of Defence Secretary Rajesh Kumar Singh in New Delhi on March 27, 2025.

Nag Missile System (NAMIS-Tr) procurement

The contract for the NAMIS (Tr) weapon system has been signed with Armoured Vehicle Nigam Limited (AVNL) at a total cost of ₹1,801.34 crore.


Developed by the Defence Research & Development Laboratory (DRDL) of DRDO, this procurement marks a significant step in modernising the anti-tank capability of the Mechanised Infantry, enhancing the Indian Army’s operational readiness across various combat scenarios.

NAMIS (Tr) is a sophisticated anti-tank weapon system equipped with a fire-and-forget missile and an advanced sighting system, providing enhanced firepower and lethality. The system is designed to transform mechanised operations, offering a strategic advantage against enemy armoured units.

Procurement of light vehicles

The Ministry has also signed contracts with Force Motors Ltd and Mahindra & Mahindra Ltd for the procurement of approximately 5,000 Light Vehicles.

These modern vehicles feature enhanced engine power and are designed to support a payload of 800 kg, ensuring high mobility for the Armed Forces across diverse terrains and operational conditions.

Boost to indigenisation and employment generation

Both procurements will contribute to strengthening India’s indigenous defence manufacturing capabilities, promoting self-reliance in defence production.

The projects are also expected to generate direct and indirect employment, particularly benefiting MSMEs involved in component manufacturing.

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