Kanpur Defence PSUs Receive Rs 341 Crore Allocation in Union Budget 2026-27
In a significant move to bolster India's defence manufacturing capabilities, the Union Budget 2026-27 has allocated a combined budget of Rs 341 crore to three defence public sector undertakings (PSUs) headquartered in Kanpur. The funding is part of the Centre's capital outlay for defence services and aims to strengthen indigenous defence production and capacity building across these strategic units.
Major Share for Advanced Weapons and Equipment India Limited (AWEIL)
Of the total allocation, Advanced Weapons and Equipment India Limited (AWEIL) alone accounts for nearly 96%, receiving Rs 329 crore. This substantial funding reflects AWEIL's larger manufacturing and operational scale as a key manufacturer of small arms and artillery systems, formed after the restructuring of the Ordnance Factory Board (OFB).
An official source highlighted that this sizable allocation underscores the government's focus on strengthening core defence manufacturing capacities and supporting ongoing modernisation within the armed forces. The enhanced funding is expected to accelerate AWEIL's production capabilities, technological upgrades, and expansion of both domestic and export-oriented manufacturing across its eight production units, which include:
- Field Gun Factory Kanpur
- Gun Carriage Factory Jabalpur
- Gun and Shell Factory Cossipore
- Ordnance Factory Kanpur
- Ordnance Factory Project Korwa
- Ordnance Factory Tiruchirapalli
- Rifle Factory Ishapore
- Small Arms Factory Kanpur
The source added that some projects have already been sanctioned, indicating a proactive approach to utilising these funds for immediate impact.
Strategic Funding for Gliders India Limited and Troop Comforts Limited
The remaining portion of the allocation is shared by two smaller but strategically vital PSUs in Kanpur. Gliders India Limited (GIL) has been allocated Rs 2.50 crore, while Troop Comforts Limited (TCL) receives Rs 10 crore.
Gliders India specialises in parachutes and aerial delivery systems, and the funds are expected to support product diversification, quality enhancements, and improved production infrastructure. Notably, GIL recently secured a Rs 30 crore order from Vietnam for the supply of critical braking and safety parachutes for Su-30 fighter aircraft, boosting India's defence exports.
Troop Comforts Limited manufactures essential gear for soldiers, including uniforms, equipment, and protective wear. The allocation to TCL is aimed at enhancing its production capabilities and supporting the diversification of its product range to meet the evolving needs of the armed forces.
Broader Implications for Defence Sector
This budget allocation aligns with the government's broader strategy to promote Atmanirbhar Bharat (self-reliant India) in defence manufacturing. By channelling funds into these Kanpur-based PSUs, the Centre aims to reduce dependency on imports, foster innovation, and create a robust ecosystem for indigenous defence production.
The move is also expected to generate employment opportunities and stimulate economic growth in the Kanpur region, reinforcing its status as a hub for defence manufacturing. As the armed forces continue their modernisation efforts, such investments are crucial for ensuring timely and cost-effective supply of critical defence equipment.
In summary, the Rs 341 crore allocation to AWEIL, GIL, and TCL in Budget 2026-27 marks a focused effort to enhance India's defence preparedness through targeted funding, with AWEIL leading the charge in small arms and artillery production, while GIL and TCL contribute to specialised areas like parachutes and troop gear.
