India’s Ministry of Defence signed two contracts on March 3, 2026 worth a total of ₹5,083 crore ($555 million) for the acquisition of six HAL ALH Mk-III MR helicopters for the Indian Coast Guard and VL-Shtil SAMs for the Indian Navy.
ALH Dhruv
The contract for six Advanced Light Helicopters (ALH) Mk-III (Maritime Role) along with operational role equipment, an engineering support package, and performance-based logistics support, valued at ₹2,901 crore ($315 million), was inked with Hindustan Aeronautics Limited (HAL). The MoD clearance to procure these twin-engine helicopters, commonly called Dhruv, for the Indian Coast Guard (ICG) was granted in December 2024.
A fatal crash in September 2024 had led to the ICG grounding its ALH fleet. However, another fatal crash of an ICG ALH in January 2025 led to the grounding of the entire fleet across all services. By mid-2026, Army and Air Force variants were flying, with the issue found to be related to operational conditions faced by Navy and ICG helicopters. It was reportedly recommended to enhance the manufacturing process of the Non-Rotating Swashplate Bearing used in Navy and ICG Dhruvs to improve its fatigue life.
The current order comes soon after a Navy ALH was revealed to have flown operationally for the first time since the January 2025 crash. An ALH Mk-III MR was deployed for an anti-hijack drill by the Andaman and Nicobar Command on February 26, 2026. The ICG had last ordered Dhruvs in March 2024, when nine helicopters were ordered alongside an order for 25 by the Army. The current order signifies overall user confidence in the platform and also rekindles potential export prospects, with the helicopter being on offer to the Philippines Coast Guard under an Indian line of credit.
ALH MK III in August 2023. Photo by ICG.
HAL is also developing an indigenous Utility Helicopter – Maritime (UH-M), based on the ALH Mk-III, for the Indian Navy. At least 60 helicopters will be procured and initial flight tests are expected to occur soon. The UH-M will feature an AESA radar, folding tail boom and main rotors and will be armed with NASM-SR anti-ship missiles and ALWT torpedoes.
The MoD had floated a Request for Information for 76 Naval Utility Helicopters (NUH) in August 2025. While 51 NUH are for the Navy, the ICG will get 25. The NUH has to be a helicopter weighing under 5.5 tons compared to the 5.7 ton UH-M. Private firms competing for NUH are expected to collaborate with global OEMs such as Airbus and Leonardo for final assembly in India. A Request for Proposal is expected by 2027, but it remains to be seen if this project will fruition given the delayed history of the NUH program. Further, HAL can be expected to push for additional UH-M depending on the progress of the project.
Vertical Launch – Shtil missiles
The contract for the procurement of Surface-to-Air Vertical Launch – Shtil missiles and associated missile holding frames, valued at ₹2,182 crore ($237 million) was signed with JSC Rosoboronexport, Russian Federation. The procurement is aimed at the four follow-on Talwar class frigates of the Indian Navy which utilize the VL-Shtil SAM compared to the arm launcher used by the original six vessels. Two of the four follow-on frigates were built in Russia and are in service, while two are being built by Goa Shipyard Ltd.
