Defence Acquisition Council greenlights Rs 2.23 lakh crore boost for Armed Forces
New Delhi: Aiming at bolstering India’s defence capabilities and fostering self-reliance initiative by the incumbent Modi government, the Defence Acquisition Council (DAC) on Thursday granted approval for Acceptance of Necessity (AoNs) totalling Rs. 2.23 lakh crore. Notably, procurement worth Rs. 2.20 lakh crore, which is a staggering 98 per cent of total amount, will be sourced from domestic industries, aligning with the government’s ‘self-reliance’ scheme.
The DAC’s recent approval encompasses crucial acquisitions, including the procurement of Light Combat Helicopter (LCH) for the Indian Air Force (IAF) and Indian Army. Reportedly, the panel cleared procuring 97 additional Tejas aircraft and 156 Prachand attack helicopters. The defence ministry also cleared the proposal to acquire Light Combat Aircraft (LCA) Mk 1A for the IAF at around Rs. 65,000 crore. These acquisitions, sourced from Hindustan Aeronautics Limited (HAL) under the Buy (Indian-IDDM) category, signify a significant step towards reducing dependence on foreign Original Equipment Manufacturers (OEMs).
Moreover, the DAC has greenlit the indigenous upgradation of Su-30 MKI Aircraft from HAL, further enhancing the strength of the Indian Air Force. These proposals are worth Rs. 1.6 lakh crore. Defence officials claimed that this strategic move not only fortifies the country’s defence capabilities but also elevates indigenous manufacturing to unprecedented heights.
In a bid to strengthen the Indian Army, the DAC has granted AoNs for the procurement of Anti-tank Munitions, including Area Denial Munition (ADM) Type-2 and Type-3, capable of neutralizing tanks, armoured personnel carriers, and enemy personnel. Additionally, the approval includes the replacement of the Indian Field Gun (IFG) with a state-of-the-art Towed Gun System (TGS) and the procurement of 155 mm Nubless projectiles for artillery guns, thereby enhancing lethality and safety.
The DAC’s nod for procuring and integrating Automatic Target Tracker (ATT) and Digital Basaltic Computer (DBC) for T-90 Tanks underscores the commitment to maintaining a combative edge over adversary platforms. For the Indian Navy, the approval includes the procurement of Medium Range Anti-Ship Missiles (MRAShM) for surface platforms, positioning itself as a primary offensive weapon onboard Indian Naval Ships.
In a significant move to promote indigenisation, the DAC has amended the Defence Acquisition Procedure (DAP) 2020. In the future, a minimum of 50 per cent indigenous content, in the form of material, components, and software manufactured in India, will be mandatory in all procurement cases. This decision excludes the cost of the Annual Maintenance Contract (AMC), Comprehensive Maintenance Contract (CMC), and Sale Service from the calculation of indigenous content.
Furthermore, the DAC’s decision to encourage start-ups and Micro, Small, and Medium Enterprises (MSMEs) participation in the defence ecosystem is evident. For procurement cases with AoN costs up to Rs. 300 crore, registered MSMEs and recognized start-ups will be considered for the issuance of Request for Proposal (RFP) without financial parameter stipulations. This can be further relaxed with the approval of the Defence Procurement Board (DPB) for AoN costs up to Rs. 500 crore on a case-by-case basis.
The DAC’s forward-looking decisions not only reinforce India’s defence capabilities but also set the stage for a more self-reliant and robust indigenous defence industry, marking a historic milestone in the nation’s journey towards security and sovereignty.
