Tata Power Strategic Engineering Division (Tata Power SED), an arm of Tata Power Company, on Monday announced signing a Rs 1,200 crore contract with Ministry of Defence for modernisation of infrastructure of 37 airfields of Indian Air force, Indian Navy and Indian Coast Guard.

"The contract needs to be executed over a period of next 4 years," Tata Power Company said in a filing to the Bombay Stock Exchange.

The contract involves supply, installation and commissioning of modern airfield equipment like Cat II Instrument Landing System and Cat II Airfield Lightning System along with other navigational aids and air traffic management system besides creating the required civil and electrical infrastructure.

In March 2011, Tata Power SED had obtained a contract worth Rs 1,220 crore from Ministry of Defence for modernisation of 30 airfields and successfully executed the same, the company said in the filing.

The above contract is continuation of the previous order with additional 37 airfields undergoing modernisation which would provide excellent control of airfield systems to air traffic controllers enhancing aerospace safety and operational capability by facilitating operations in poor visibility and adverse weather conditions, it added.

Tata Power is in the process of selling its defence business (Tata Power SED) to Tata Advanced Systems Limited (TASL) through a scheme of arrangement. The transfer of the business to TASL is already approved by National Company Law Tribunal (NCLT) and is expected to be completed once regulatory and other routine approvals are received.