Bharat Forge has reportedly come out as the lowest bidder in a significant ₹7,000 crore contract for advanced towed artillery guns, developed by the Defence Research and Development Organisation for the Indian Army.

What Happened: Under the likely terms, Bharat Forge would handle 60% of the order, while Tata Advanced Systems, as the other development partner, could secure the remaining 40% if it matches Bharat Forge's pricing, the Economic Times reported, citing sources.

Commercial bids for the 307-gun order were reviewed last week, with Bharat Forge's bid emerging as the most competitive, the business daily reported. According to procurement guidelines, Tata Advanced Systems reportedly can receive a portion of the contract at the same rate.

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The artillery guns have passed extensive testing across various terrains, including deserts and high-altitude areas in Sikkim, confirming their readiness for induction into the Army. Created by DRDO to eventually replace the older Bofors guns, these 155 mm artillery systems have already been exported to Armenia. Tests included rigorous firing drills at heights above 13,000 feet and assessments of performance in extreme cold.

More Orders Incoming? The Army has also issued a tender to acquire a new series of next-generation artillery guns, aiming to procure 400 units initially as it gradually phases out legacy equipment. Interest in the project has been reported to be high, with major private defence firms eager to participate following recent investments in artillery technology.

Expected competitors include Larsen & Toubro, which has delivered K9 Vajra self-propelled guns to the Army, as well as Bharat Forge and Tata Advanced Systems. The new 155-millimetre 52-calibre guns will be lighter and more versatile, designed to advance the Army's artillery capabilities beyond existing models like the new artillery guns.

Price Action: Bharat Forge’s share price was up 1.19% at ₹1,439.85 near the start of trade on Tuesday.

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