New Delhi: Bharat Heavy Electricals Limited (BHEL) has entered into a Licensing Agreement for Transfer of Technology (LAToT) with the Naval Science & Technological Laboratory (NSTL), a key laboratory under the Defence Research and Development Organisation (DRDO). The agreement focuses on the fabrication, installation, and commissioning of the LM2500 Gas Turbine Infrared Suppression System (GT-IRSS) for naval vessels.
Strengthening Indigenous Defence Capabilities
The GT-IRSS technology, developed by NSTL-DRDO, is designed to enhance the survivability and operational effectiveness of naval platforms by reducing infrared signatures. Under this agreement, BHEL will undertake technology absorption and execution of the system, marking a significant step in expanding its defence manufacturing capabilities. The collaboration is expected to strengthen India’s indigenous defence ecosystem and reduce reliance on imported technologies.
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Scope of the Agreement
As part of the pact, BHEL will be responsible for:
- Fabrication of the LM2500 Gas Turbine Infrared Suppression System
- Installation and commissioning on naval vessels
- Absorption of critical defence technology
The company stated that the agreement is domestic in nature, while financial and commercial details remain confidential.
Alignment with ‘Make in India’ Initiative
The partnership aligns with the Government of India’s “Make in India” initiative, which focuses on boosting self-reliance in critical defence technologies.By entering into this agreement, BHEL aims to enhance its capabilities in high-end engineering solutions for strategic and defence applications, further diversifying its business portfolio beyond the power sector.
Strong Financial and Operational Performance
BHEL has reported strong growth momentum in FY26. The company achieved a provisional turnover of around ₹32,350 crore, reflecting an 18% year-on-year increase.
Additionally, BHEL recorded robust order inflows of approximately ₹75,000 crore during the year, taking its total order book to around ₹2.4 lakh crore. Its core power segment remained a key growth driver, contributing orders worth nearly ₹59,000 crore.
Expanding Presence in Defence Sector
The technology transfer agreement is expected to significantly boost BHEL’s presence in the defence segment. By leveraging indigenous technologies developed by DRDO, the company is positioning itself as a key player in advanced naval and defence engineering solutions.
About Bharat Heavy Electricals Limited (BHEL)
Bharat Heavy Electricals Limited (BHEL) is one of India’s largest engineering and manufacturing companies, primarily engaged in the power and industrial sectors. The company provides integrated solutions ranging from design and manufacturing to installation and maintenance of power plants and industrial systems.
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