GS3 · Defence · Science and Technology

MoD signs ₹4,106 crore contracts for GSAT-7C satellite and Varunastra torpedoes

Varunastra heavyweight torpedo being fired from an Indian Navy warship
Battle Brief

The Ministry of Defence signed two contracts worth about ₹4,106 crore on 15 October 2026. The first, worth ₹2,563 crore, is with NewSpace India Limited (NSIL) for GSAT-7C, a dedicated communication satellite for the Indian Air Force. The second, worth ₹1,543 crore, is with Bharat Dynamics Limited (BDL) for Varunastra heavyweight anti-submarine torpedoes for the Navy. Both are indigenous.

Fact File

Total value
₹4,106 crore
GSAT-7C (NSIL)
₹2,563 crore
Varunastra (BDL)
₹1,543 crore
Torpedo designer
NSTL, Visakhapatnam
In the news

GSAT-7C and Varunastra: what happened?

Picture a fighter pilot, an AWACS aircraft and a ground station that all need to talk securely while hundreds of kilometres apart. A dedicated satellite makes that possible. Below the sea, a submarine is only a threat if you can find it and strike it. These two contracts cover both jobs, and both are built in India.

  • 15 Oct 2026: contracts signed in New Delhi in the presence of Additional Secretary and DG (Acquisition) A. Anbarasu (PIB).
  • GSAT-7C is indigenously designed, developed and made. It will give IAF assets secure, resilient and seamless communication.
  • Varunastra is a ship-launched anti-submarine torpedo developed by DRDO’s Naval Science and Technological Laboratory (NSTL).
  • It can engage enemy submarines at long ranges and has advanced manoeuvring capability.
Back Story

What is the GSAT-7 family?

  • GSAT-7 (‘Rukmini’), launched in 2013, was India’s first dedicated military communication satellite, built for the Navy.
  • GSAT-7A, launched in December 2018, serves the Air Force.
  • GSAT-7C was cleared by the Defence Acquisition Council in 2021 to strengthen the IAF’s network-centric operations.
  • NSIL, set up in 2019 under the Department of Space, is ISRO’s commercial arm and now signs such contracts with users.
Back Story

What does each contract deliver?

Source: PIB, 15 Oct 2026
PointGSAT-7CVarunastra
UserIndian Air ForceIndian Navy
SupplierNSIL, BengaluruBDL, Hyderabad
Value₹2,563 crore₹1,543 crore
RoleSecure satellite communicationAnti-submarine warfare from ships
Rulebook

Which policies and laws apply?

  • Union List Entry 1: defence of India; Article 246 gives Parliament exclusive power over it.
  • Defence Acquisition Procedure (DAP) 2020: gives first preference to indigenously designed and developed equipment.
  • Positive Indigenisation Lists: items the services must buy from Indian industry.
  • Indian Space Policy, 2023: defines the roles of ISRO, NSIL and IN-SPACe.
Fault Lines

What are the challenges?

  • One satellite is a single point of failure if it is jammed or attacked.
  • India’s fleet of military satellites is still small compared with China’s.
  • Torpedo orders must be delivered on time; production capacity at public sector units can lag.
  • Underwater warfare also needs sonars, helicopters and submarines, not torpedoes alone.
Road Ahead

What should be done next?

  • Build a constellation and ground backups so that communication does not depend on one satellite.
  • Speed up the Space-Based Surveillance programme and the Defence Space Agency’s plans.
  • Bring private suppliers into torpedo sub-systems to add capacity.
  • Use Varunastra’s success to explore exports to friendly navies.
Exam Radar

What can Prelims ask?

  • Varunastra: heavyweight, ship-launched anti-submarine torpedo; designed by NSTL (DRDO), Visakhapatnam; made by BDL.
  • GSAT-7 (2013): Navy. GSAT-7A (2018): Air Force. GSAT-7C: Air Force (contract 2026).
  • NSIL: CPSE under the Department of Space, set up in 2019.
  • Defence Space Agency: tri-service agency set up in 2019.
Answer Lab

How to write about defence indigenisation in Mains

Practice question (10 marks, 150 words): Indigenisation of defence technology is central to strategic autonomy. Examine with recent examples. (GS-III)

  • Intro: ₹4,106 crore contracts for GSAT-7C and Varunastra, 15 Oct 2026.
  • Why: secure communication, anti-submarine warfare, fewer import risks.
  • Enablers: DAP 2020, indigenisation lists, NSIL, DRDO labs.
  • Gaps: production capacity, satellite numbers, timelines.
  • Conclusion: steady orders plus R&D build real capability.

Image: Varunastra torpedo being fired from an Indian Navy ship. Indian Navy, Wikimedia Commons (EdictGov-India)

How to use this in Mains

GS-III Indigenisation in defence and military space capability

If asked: How does indigenous defence production strengthen strategic autonomy? (GS-III)

Quote: “Both contracts mark a significant step towards advancing the development of domestic defence manufacturing capabilities while promoting self-reliance in critical technologies.”

Use it: Quote it, then give both contracts as examples.

If asked: Why are dedicated military satellites important for modern warfare? (GS-III)

Quote: “This indigenously designed, developed & manufactured satellite will enhance the secure, resilient & seamless communication capabilities for the assets of the Indian Air Force.”

Use it: Use it to explain network-centric warfare, then add the need for redundancy.

Exam angle

UPSC

Prelims: GSAT-7 series, Varunastra, NSIL, BDL. · Mains GS-III: defence indigenisation and space security.

Practice MCQs

Original practice questions (not PYQs).

Practice · UPSC

Varunastra, recently in the news, is

Answer (a) & explanation

Varunastra is an indigenous ship-launched heavyweight torpedo developed by NSTL, Visakhapatnam.

Practice · UPSC

Consider the following statements:
1. GSAT-7 was India’s first dedicated military communication satellite, built for the Navy.
2. NewSpace India Limited is a CPSE under the Ministry of Defence.
Which of the statements given above is/are correct?

Answer (a) & explanation

NSIL is under the Department of Space, not the Ministry of Defence.

Practice · UPSC

The Naval Science and Technological Laboratory (NSTL) of DRDO is located at

Answer (b) & explanation

NSTL is at Visakhapatnam.

Quick questions

Questions students ask about this

What is GSAT-7C?

A dedicated, indigenously built communication satellite for the Indian Air Force.

Who will build Varunastra torpedoes?

Bharat Dynamics Limited, Hyderabad.

What is the total value of the contracts?

About ₹4,106 crore.

Who designed Varunastra?

DRDO’s Naval Science and Technological Laboratory, Visakhapatnam.

Keep studying

Go deeper

Official source: PIB, 15 Oct 2026: MoD inks Rs 4,106 crore contracts for GSAT-7C communication satellite and Varunastra Heavy Weight Torpedoes

facts from cited sources only; faculty review pending