The Defence Ministry on Tuesday said it sealed a deal with state-run Bharat Dynamics Ltd to procure medium-range surface-to-air missiles (MRSAM) for the Indian Navy at a cost of Rs 2,960 crore.

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The contract was signed in the presence of Defence Secretary Rajesh Kumar Singh.

"The MRSAM system is a standard fit, onboard multiple Indian Naval ships and is planned to be fitted on the majority of the future platforms planned for acquisition," the ministry said.

It said the contract marks a critical milestone in the ongoing efforts to bolster India's defence capabilities and indigenise advanced military technology.

"With the emphasis on 'Aatmanirbhar Bharat', the missiles would be supplied by BDL under 'Buy (Indian)' category with largely indigenous content," the ministry said.

"The contract would generate employment of approx. 3.5 lakh mandays in the defence industry, including various MSMEs," it said.