New Delhi: In a major boost to India’s defence self-reliance ambitions, the Ministry of Defence has sealed a contract worth ₹659.47 crore with a consortium led by Kanpur’s MKU Ltd and Medbit Technologies for the supply of advanced night sight (image intensifier) devices for the Indian Army’s 7.62 x 51 mm SIG-716 assault rifles.
This agreement was finalized on October 15, 2025, under the Buy (Indian-IDDM) (Indigenously Designed, Developed and Manufactured) category — ensuring that more than 51% of the components are Indian.
MKU Deal for Upgrading Night Combat Capability
These new night sight devices will enable soldiers to exploit the extended effective range of SIG-716 rifles and engage targets up to 500 meters even under low-light or starlit conditions. This marks a considerable improvement over existing passive night sight systems.
To complete the package, the procurement includes accessories such as lens covers, eye guards, cleaning kits, chargers, battery packs, and multiple battery sets for sustained operations.
These devices are designed for durability, with an in-service life of 10,000 operational hours or 10 years, whichever comes earlier. The contractor is also required to provide 10 years of maintenance, training and support to the Army’s operators, maintenance teams, and quality assurance personnel.
Strengthening Indigenous Defence Ecosystem
The emphasis on more than 51% indigenous content aligns with India’s Atmanirbharta (self-reliance) goals in the defence sector. The contract will benefit Micro, Small and Medium Enterprises (MSMEs) by involving them in component manufacturing and raw material supply chains.
Kanpur’s MKU Ltd is already known for its electro-optics and soldier protection systems. It maintains a dedicated R&D and production facility in Kanpur for electro-optronic devices like night vision, thermal systems, and other optoelectronic systems.
MKU’s electro-optronics arm (Netro Optronics) also develops night vision systems, weapon mounting optics, and thermal sensors — making them a natural fit for this contract.
Strategic Impact of this MKU Deal & Way Forward
This Rs 659.47 crore deal is more than just a procurement — it is a signal. It reinforces the Indian Army’s push to modernize infantry capabilities, especially under night or low-visibility conditions. It also deepens India’s defence industrial base by supporting indigenous development and encouraging private defence firms.
This contract dovetails with India’s recent defence policies that prioritize “Make in India”, faster procurement cycles, and boosting exports of defence technologies.
In coming years, as more such contracts are awarded under the Buy (Indian-IDDM) model, India may emerge not only as a strong internal user but also as an exporter of advanced electro-optics and night vision systems.
