New Delhi: India on Friday cleared a sweeping set of defence procurement proposals worth about Rs 2.38 lakh crore, with the Defence Acquisition Council (DAC) granting Acceptance of Necessity (AoN) for a range of platforms aimed at strengthening the operational readiness of the Air Force, Army and Coast Guard. The approvals, granted at a meeting chaired by Defence Minister Rajnath Singh in New Delhi, include new batches of S-400 air defence systems, medium transport aircraft, artillery guns and surveillance capabilities, marking one of the largest single-day clearances in recent years.
The council, the defence ministry’s apex body for capital acquisitions, approved proposals spanning air defence, mobility, communication and surveillance systems. Officials described the clearances as part of a broader push to modernise ageing fleets and plug operational gaps across services.
A major component of the approvals relates to the Indian Air Force’s plan to induct 60 medium transport aircraft to replace its ageing Soviet-origin AN-32 and IL-76 fleet. These aircraft are expected to have a payload capacity of 18 to 30 tonnes and will address strategic and tactical airlift requirements. According to sources, 12 aircraft are likely to be acquired in fly-away condition, while 48 will be manufactured in India, aligning with domestic production goals.
The multi-billion programme has drawn interest from global manufacturers. Contenders include Lockheed Martin’s C-130J Super Hercules, already in service with the IAF, Embraer’s KC-390 Millennium, and Airbus Defence and Space’s A-400M Atlas, each offering varying payload capacities and operational roles.
In parallel, the DAC cleared procurement of an additional batch of S-400 long-range surface-to-air missile systems from Russia. While the ministry did not specify numbers, sources indicated that five additional units have been approved. India had signed a USD 5 billion deal in October 2018 for five S-400 systems, of which three squadrons have already been delivered.
The S-400 systems are designed to counter long-range aerial threats targeting critical infrastructure. Their performance during Operation Sindoor, particularly in the May 7 to 10 hostilities last year, was cited by officials as a factor in the decision to expand the inventory. The new order is expected to be treated as a follow-on to the earlier contract, with no anticipated complications from US sanctions under CAATSA.
The council also approved the acquisition of remotely piloted strike aircraft, which will support offensive counter air and coordinated air operations, alongside intelligence, surveillance and reconnaissance roles. Additionally, the overhaul of Su-30 aero engines and associated aggregates was cleared to extend the service life of the fighter fleet and maintain operational readiness.
For the Indian Army, the DAC approved a suite of systems aimed at improving battlefield awareness, firepower and communication. These include the Air Defence Tracked System, which will provide real-time control and reporting of air defence operations, and High Capacity Radio Relay systems designed to ensure reliable and secure communications.
The approvals also cover Armoured Piercing Tank Ammunition to enhance anti-tank lethality, and the Runway Independent Aerial Surveillance System, which will enable flexible deployment of surveillance assets without reliance on conventional airstrips.
A key artillery upgrade comes in the form of the Dhanush gun system, an indigenously developed 155mm x 45-calibre towed artillery gun. Based on the FH-155 Bofors platform, the system incorporates digitised controls, improved targeting and navigation, and offers an effective firing range of up to 38 kilometres under operational conditions. Officials said its induction will enable the Army to engage targets at longer ranges with improved accuracy across diverse terrains.
The Indian Coast Guard will also benefit from the approvals, with the DAC granting AoN for Heavy Duty Air Cushion Vehicles. These platforms are intended for high-speed coastal patrolling, reconnaissance, search and rescue operations, and logistical support, including the transport of personnel and supplies in challenging maritime environments.
The defence ministry said that in the financial year 2025 to 26, the DAC has so far accorded AoN for 55 proposals amounting to Rs 6.73 lakh crore. In addition, capital procurement contracts have been signed for 503 proposals worth Rs 2.28 lakh crore during the current fiscal year.
According to the ministry, both the total value of approvals and the number of contracts signed represent the highest levels recorded in any financial year to date. Officials said the latest round of clearances reflects continued momentum in defence modernisation, with a focus on capability enhancement, indigenisation and readiness across all three services.