DAC clears defence procurement proposals worth $22.28 billion; 82% to be sourced from Indian industry
New Delhi, Oct 26. The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, on October 26 accorded Acceptance of Necessity (AoN) to capital acquisition proposals worth approximately ₹2.12 lakh crore ($22.28 billion) for the Indian Army, Navy and Air Force, with around 82 percent of the planned procurements to be sourced from the domestic defence industry.
The approvals cover a wide range of military equipment, including artillery systems, helicopters, air defence weapons, unmanned aerial vehicles (UAVs), counter-drone systems, naval platforms and weather surveillance radars. The proposed acquisitions are aimed at strengthening the operational mobility, surveillance, firepower, air defence and combat capabilities of the three services.
AoN represents in-principle approval for a proposed acquisition and precedes subsequent procurement procedures, including the formulation of requirements, tendering and contract negotiations, as applicable.
For the Indian Army, the DAC approved proposals for high mobility vehicles (HMVs), a self-propelled tracked gun system, a gun-shot response system (GSRS), light multi role helicopters (LMRH), very short-range air defence systems (VSHORADS), a platform-based counter-unmanned aerial system (C-UAS), long-range unmanned aerial systems, surveillance UAVs, an integrated surveillance and strike system and a long-range Kamikaze drone system.
The proposed acquisition of HMVs is intended to improve the Army’s mobility, logistical support and ability to operate in challenging terrain. The self-propelled tracked gun system is expected to provide mechanised formations with artillery firepower and mobility suited to their operational requirements.
The GSRS will function as a force multiplier by providing real-time situational awareness, while the LMRHs are intended for use by both the Army and the Air Force. Their planned roles include reconnaissance and surveillance, combat operations, search and rescue of troops, and humanitarian assistance and disaster relief.
The proposed VSHORADS acquisition is designed to address emerging aerial threats, particularly small, next-generation targets. The platform-based C-UAS capability is intended to improve the survivability of tanks against unmanned aerial threats on the modern battlefield.
The Army’s proposed surveillance and drone systems, including long-range and kamikaze drone capabilities, are expected to enhance reconnaissance, target acquisition and strike capabilities, supporting more effective operations against emerging battlefield threats.
For the Indian Navy, the DAC granted AoN for an Active Offboard Decoy System (AODS) and other major naval platforms. The AODS is intended to strengthen the Navy’s anti-missile defence by improving the ability of ships to counter modern anti-ship missiles. By deploying decoys away from the vessel, the system is designed to divert incoming missile threats and improve the effectiveness of a ship’s defensive measures.
The proposed major naval platforms, designed and constructed indigenously, are expected to incorporate modern warfare capabilities and enhance the Navy’s overall combat potential. The emphasis on domestic design and construction also aligns with the government’s broader efforts to expand India’s indigenous naval shipbuilding and defence manufacturing capabilities.
For the Indian Air Force, the council approved acquisition proposals covering helicopters, air defence systems, weapons and a mobile X-band Doppler weather radar system. These procurements are intended to strengthen air defence and war-fighting capabilities while addressing operational and logistical requirements.
The proposed Special Utility Helicopters will help the IAF meet essential air transport needs. Meanwhile, the mobile X-Band Doppler weather radar system is expected to provide high-resolution, localised weather surveillance in forward areas, helping aircrews and operational commanders assess weather conditions and plan missions more effectively.
The emphasis on domestic procurement is a major feature of the latest approvals. With approximately 82 percent of the total proposed acquisitions earmarked for sourcing from Indian industry, the decisions are expected to support domestic defence manufacturers and suppliers, encourage greater indigenous production and contribute to the development of local defence technology and supply chains.
The approvals span both conventional military capabilities and emerging areas of warfare, including unmanned systems, counter-drone technology and advanced surveillance. Together, they reflect the armed forces’ efforts to adapt to changing operational requirements while strengthening their equipment base.
The ₹2.12 lakh crore ($22.28 billion) package represents the estimated value of proposals receiving in-principle approval, rather than the value of contracts already signed. The proposals will proceed through the applicable acquisition process before individual procurement contracts are concluded.
