The Ministry of Defence has signed a contract with Hindustan Aeronautics Limited (HAL), Transport Aircraft Division, Kanpur, for the acquisition of eight Dornier 228 aircraft and associated operational role equipment for the Indian Coast Guard (ICG). The agreement was finalised under the Buy (Indian) category and was signed in New Delhi in the presence of the Defence Secretary, Rajesh Kumar Singh, on 12 February 2026.

The deal is valued at Rs 2,312 crore, equivalent to Rs 23.12 billion (Rs 23.12 bn), and will fund procurement and equipment delivery. The funding is intended to support production, integration and testing activities at HAL and to meet the operational requirements set by the coast guard. Contractual timelines and delivery milestones will be governed by established defence procurement procedures and will be subject to performance verification prior to final acceptance.

Officials said the programme is expected to generate significant direct and indirect employment by strengthening HAL's production ecosystem and by supporting a broad network of micro, small and medium enterprises (MSMEs) and ancillary industries. It is also expected to create sustained opportunities in maintenance, repair and overhaul and in life cycle technical support, thereby deepening domestic supply chains. The initiative is presented as part of wider efforts to promote Aatmanirbhar Bharat and Make-in-India while enhancing maritime security. Stakeholders will monitor skill development and supplier readiness as part of implementation oversight.

The Dornier 228 aircraft will augment coastal surveillance, search and rescue operations and maritime domain awareness missions for the ICG, improving patrol reach and responsiveness. Hindustan Aeronautics Limited will undertake production and delivery responsibilities while the ministry will oversee compliance, performance and operational integration. The contract is described as reinforcing national manufacturing capabilities and supporting sustained indigenous maintenance and technical support capacities. The procurement is expected to be integrated with existing coast guard platforms to enhance interoperability and mission effectiveness.