Bharat Forge gets ₹425-crore Navy GTG order for 12 sets

Deal signed with Ministry of Defence

Bharat Forge Ltd (BFL) has signed a contract valued at ₹425 crore with the Ministry of Defence (MoD) for the supply of Gas Turbine Generators (GTGs) to the Indian Navy. The equipment will be used for onboard power generation on Kolkata-class ships. The company disclosed that the contract will be executed over a period of five years.

The MoD also said the contract is for procurement of 12 sets of 1.25 MW Marine Gas Turbine Generators for the Indian Navy. The agreement was signed in the presence of Defence Secretary Rajesh Kumar Singh in New Delhi. The procurement has been awarded under the Buy (Indian) category.

What Bharat Forge will supply

Under the contract, Bharat Forge will supply 12 marine GTG sets rated at 1.25 MW each. The GTGs are intended to enhance the ships’ onboard power generation capability. The company said the new units will replace lower-capacity GTGs currently in service onboard.

The GTG rating and the replacement of lower-capacity units are key operational details highlighted by the company and the defence ministry. The systems are meant for Kolkata-class warships, also described as Kolkata-class destroyers in reports. The focus of the programme is on onboard electrical power generation rather than propulsion.

“Buy (Indian)” rules and indigenous content

The contract has been awarded under the Defence Acquisition Procedure 2020 (DAP-2020) in the Buy (Indian) category. The defence ministry said the procurement includes a minimum indigenous content requirement of 60%. This means at least 60% of the content used in the supplied systems must be sourced or manufactured domestically.

The MoD linked the project to Aatmanirbhar Bharat and Make in India objectives, stating that it is aimed at strengthening domestic manufacturing capabilities in critical naval technologies. It also said the programme is expected to help establish indigenous capability in the manufacture of marine gas turbine generators.

Entry into marine gas turbine systems

Bharat Forge said the order marks its entry into the marine gas turbine business. The company also stated that the contract will deliver the first indigenous GT-based power plant to operate aboard Indian Naval ships.

As part of execution, Bharat Forge said it will establish a dedicated integration and test facility for these generators. It also said it would participate in design and development programmes for larger power plants and propulsion gas turbines, indicating a broader pipeline of work connected to gas turbine technologies.

Execution timeline and delivery window

Both the company and the MoD indicated that the contract will be executed over five years. The five-year period frames manufacturing, integration, testing, and supply of the 12 GTG sets, along with associated lifecycle support expectations described by the ministry.

The defence ministry said the contract is expected to provide end-to-end lifecycle support for the systems. It added that the programme would contribute to maritime self-reliance in strategic technologies and enhance the Indian Navy’s operational readiness through domestic production and maintenance support.

Stock reaction and trading levels cited

The order put Bharat Forge shares in focus in market commentary following the disclosure. According to the data cited, on Friday, June 19, Bharat Forge shares closed 1.06% higher at ₹2,041.40. The stock also touched a new all-time and 52-week high of ₹2,059.50.

These levels were referenced alongside the company’s stock exchange filing about the defence order. The reported move reflects near-term market attention on the defence manufacturing pipeline and the company’s entry into a new naval equipment segment.

Related capability build-out: Andhra Pradesh MoU

Separately, reports noted that in May, Bharat Forge signed a memorandum of understanding (MoU) with the Andhra Pradesh government to set up India’s first private-sector facility for marine gas turbine maintenance, repair, overhaul, and indigenous development. The facility is proposed over nearly 80 acres within the state’s defence manufacturing corridor.

The facility is expected to be developed through Bharat Forge’s aerospace division and co-located with the Naval Dockyard, INS Eksila, and the Eastern Naval Command headquarters. The project is planned to be executed in two phases, with the first phase focused on creating a marine gas turbine repair and overhaul complex.

Key facts at a glance

Market impact and what changes operationally

From an operational perspective, the replacement of lower-capacity units with 1.25 MW GTGs is positioned as an upgrade for onboard power generation on Kolkata-class ships. The MoD framed the programme as a step that strengthens domestic manufacturing capabilities in critical naval technologies and supports operational readiness through domestic production and maintenance support.

For Bharat Forge, the order adds a new product line in marine gas turbine generators, along with an integration and testing setup that the company said it will establish. The stock movement cited around June 19 showed an immediate market response, with the share price closing at ₹2,041.40 and touching ₹2,059.50 intraday.

Why the contract matters

The most material element is the formal entry of Bharat Forge into marine gas turbine systems under a DAP-2020 Buy (Indian) order that specifies 60% indigenous content. This combination anchors the contract in the current defence procurement framework and ties it to indigenisation goals.

The defence ministry’s emphasis on indigenous capability and lifecycle support indicates that the programme is not limited to supply alone. Bharat Forge’s stated plan to build a dedicated integration and test facility, and to participate in larger power plant and propulsion GT programmes, signals how the company is aligning its defence manufacturing roadmap with naval requirements.

Conclusion

Bharat Forge’s ₹425-crore contract to supply 12 sets of 1.25 MW marine gas turbine generators for the Indian Navy’s Kolkata-class ships will be executed over five years under the DAP-2020 Buy (Indian) route with at least 60% indigenous content. The next visible milestones will be the establishment of the dedicated integration and testing facility and the phased execution of deliveries during the contract period.