New Delhi | The defence ministry on Friday sealed an over Rs 5,300 crore deal with state-run Bharat Electronics Ltd (BEL) for procurement of electronic fuzes for the Indian Army for a period of 10 years.

An electronic fuze is an integral component of medium to heavy calibre artillery guns which provide sustained artillery firepower for military operations.

The ministry said the fuzes are being procured for usage in artillery guns which are capable of lethal engagements in various kinds of terrain including high-altitude areas along the northern borders.

It said the aim of the project is to build up ammunition stocks to minimise imports.

"The Ministry of Defence on December 15 signed a landmark contract with Bharat Electronics Ltd, Pune for procurement of electronic fuzes for the Indian Army for a period of 10 years, at a total cost of Rs 5,336.25 crore," it said.

"As part of the 'Aatmanirbhar Bharat' vision, this contract has been signed for ammunition procurement under 'manufacture of ammunition for Indian Army by Indian industry', a government initiative for long term requirement of 10 years," the ministry said in a statement.

It said the aim of the project is to achieve self-sufficiency in ammunition manufacturing, obtain critical technologies, and secure stock affected by supply chain disruption.

The electronic fuzes will be manufactured by the BEL at its Pune and upcoming Nagpur Plant.

"The project will generate employment for one-and-half lakh man days and encourage active participation of Indian industries including MSMEs in ammunition manufacturing and broaden ammunition manufacturing ecosystem in the country," the ministry said.