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Bharat Heavy Electricals Limited (BHEL) is making a big push into the naval defence space.
What’s going on: the company has signed a technology transfer agreement with the Naval Science & Technological Laboratory (NSTL) in Visakhapatnam, which operates under DRDO.
DRDO is India’s government organisation that develops military technology, weapons, and defence systems to strengthen the country’s security and self-reliance.
The deal focuses on a specialised system called the gas turbine infrared suppression system. In simple terms, this tech helps reduce the heat signature of naval ships, making them harder to detect.
Under this partnership, BHEL will handle the fabrication, installation, and commissioning of this system for ships powered by LM2500 gas turbines.
The big picture: this isn’t just about one deal, it’s about the scale of opportunity opening up in India’s defence sector.
The military is in the middle of a massive upgrade cycle, from better equipment for over a million soldiers to advanced systems for a growing fleet of naval ships and aircraft.
Backing this push is a sharply rising defence budget, which has jumped from ₹2.53 lakh crore in 2013-14 to ₹6.81 lakh crore in 2025-26.
That steady increase signals one thing clearly: India is investing heavily in building stronger, more self-reliant defence capabilities, and companies like BHEL are positioning themselves right at the centre of it.
