Defence Acquisition Council clears $25.7-bn proposals to boost Army, Air Force and Coast Guard capabilities
New Delhi, March 27. The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, on March 27 granted Acceptance of Necessity (AoN) for a series of capital procurement proposals worth an estimated ₹2.38 lakh crore ($25.7 billion), aimed at significantly enhancing the operational capabilities of the Indian Army, Air Force and Coast Guard.
For the Indian Army, approvals were given for the induction of the Air Defence Tracked System, Armoured Piercing Tank Ammunition, High Capacity Radio Relay, Dhanush Gun System and a Runway Independent Aerial Surveillance System. The Air Defence Tracked System is expected to enable real-time air defence control and reporting, while the radio relay system will ensure secure and reliable communications.
The Dhanush artillery system is set to extend the Army’s ability to engage targets at longer ranges across varied terrain with improved accuracy and firepower. Meanwhile, the aerial surveillance system will strengthen battlefield monitoring capabilities, and the new anti-tank ammunition will enhance lethality against armoured threats.
The Indian Air Force will see approvals for the procurement of medium transport aircraft, additional S-400 Triumf long-range surface-to-air missile systems, remotely piloted strike aircraft, and the overhaul of Su-30 aero engine aggregates. The new transport aircraft will gradually replace ageing AN-32 and IL-76 platforms to meet strategic and tactical airlift needs. The S-400 systems are intended to counter long-range aerial threats to critical assets, while the remotely piloted strike platforms will add offensive counter-air capability alongside stealth intelligence, surveillance and reconnaissance roles. Upgrading Su-30 engine components is expected to extend aircraft service life and sustain operational readiness.
For the Indian Coast Guard, the DAC approved the procurement of heavy duty air cushion vehicles to support coastal patrols, reconnaissance, search and rescue, and logistics support in maritime zones.
The Ministry noted that in the financial year 2025-26, the DAC has accorded AoN for 55 proposals worth ₹6.73 lakh crore ($72.7 billion). Additionally, capital procurement contracts worth ₹2.28 lakh crore ($24.6 billion) across 503 proposals have already been signed during the current fiscal year – marking the highest level of approvals and contract signings recorded in any single financial year.
