In a major boost to India’s defence manufacturing sector, the Cabinet Committee on Security (CCS) has approved a long-awaited ₹7,000 crore contract for the procurement of 307 Advanced Towed Artillery Gun Systems (ATAGS) for the Indian Army. The deal, set to be formalized soon, will be executed by two leading Indian defence firms—Kalyani Strategic Systems Limited (KSSL), a subsidiary of Bharat Forge, and Tata Advanced Systems Limited (TASL).
The ATAGS is an indigenously developed 155mm/52-caliber towed artillery gun system, designed to strengthen India’s artillery firepower along its borders with China and Pakistan. Under the contract, Bharat Forge has secured the majority share, with a 60% production allocation, while Tata Advanced Systems will manufacture the remaining 40%.
Developed in collaboration with the Defence Research and Development Organisation (DRDO), ATAGS is a crucial part of India’s self-reliance initiative in defence technology. The program received the Ministry of Defence’s Acceptance of Necessity (AoN) in March 2023, paving the way for this large-scale procurement.
Beyond this order, the Indian Army has also issued a tender for an additional 400 howitzers, attracting bids from major defence players like Bharat Forge, Larsen & Toubro (L&T), Adani Defence, and the Ordnance Factory Board.
This development has put Bharat Forge in the spotlight, with investors closely monitoring the stock amid expectations of increased defence orders and a boost in indigenous defence production under the government’s ‘Make in India’ initiative.
