ALH Mk-III and Shtil Missiles

Contract value: Rs 5,083 crore (≈ US$ 6.2 billion).
Platforms procured:
Six ALH Mk‑III helicopters for the Indian Coast Guard (Hindustan Aeronautics Limited).
Shtil Surface‑to‑Air Missile (SAM) system with missile holding frames for the Indian Navy (JSC Rosoboronexport, Russia).
ALH Mk‑III specifications: Twin‑engine, maritime‑role helicopter; supports offshore installation protection, fisheries safety and marine‑environment monitoring.
Shtil SAM details: Medium‑range, ship‑borne, vertical launch system (VLS); derived from the Russian Buk family; capable of engaging aircraft, helicopters, UAVs and anti‑ship missiles.
Indigenisation impact: Over 200 MSMEs involved; ~6.5 million man‑hours of employment; aligns with Make in India and Aatmanirbhar Bharat.

The Advanced Light Helicopter (ALH) programme began in the 1990s to replace aging fleet of HAL‑Chetak and HAL‑Cobra. The Mk‑III variant incorporates advanced avionics, glass cockpit, and maritime‑specific sensors.
Shtil (also known as SA‑N‑12) is a Russian naval SAM system, offering a cost‑effective alternative to indigenous systems like Barak‑8 while providing immediate capability enhancement.
The procurement follows the Strategic Defence Procurement Policy (SDPP) 2020, which emphasizes domestic content, MSME participation and technology transfer.

Maritime security: Enhances Coast Guard’s ability to patrol the Exclusive Economic Zone (EEZ), protect offshore assets (oil & gas platforms) and respond to maritime disasters.
Layered air‑defence: Shtil adds a medium‑range layer to the Navy’s existing short‑range (e.g., Barak‑1) and long‑range (e.g., Barak‑8) systems, improving survivability of frontline warships.
Indigenisation & employment: The contract’s large MSME participation supports the Make in India agenda and creates substantial skilled employment.
Strategic autonomy: While sourcing a Russian system, the deal reflects a balanced approach—leveraging foreign technology for immediate needs while domestic platforms mature.

Article 370 (now abrogated) & Article 35A: Not directly relevant, but maritime security ties to the Union’s exclusive jurisdiction over defence (Article 53).
Defence Procurement Policy (DPP) 2020: Provides the legal framework for ‘Buy (Indian‑Indigenously Designed, Developed and Manufactured)’ category under which ALH Mk‑III falls.
Public Procurement (Preference to MSMEs) Rules, 2020: Mandates a minimum 30% participation of MSMEs in defence contracts, reflected in this deal.