From missiles to towed guns and LCA fighter jets... Centre gives nod for defence buys worth Rs 2.23 lakh crore

The Defence Acquisition Council (DAC), led by Defence Minister Rajnath Singh, approved the Acceptance of Necessity (AoNs) for Capital Acquisition Proposals totalling Rs 2.23 lakh crore on November 30, 2023. Notably, 98% of this amount, equivalent to Rs 2.20 lakh crore, will be sourced from domestic industries, aligning with the goal of 'Aatmanirbharta' in the Indian Defence Industry.

The DAC granted AoN for the procurement of two types of anti-tank munitions, namely Area Denial Munition (ADM) Type-2 and Type-3, capable of neutralizing tanks, armoured personnel carriers, and enemy personnel. Additionally, approval was given for the acquisition of a state-of-the-art Towed Gun System (TGS) to replace the Indian Field Gun (IFG), reaching the end of its service life. The AoN for a 155 mm nubless projectile for use in 155 mm artillery guns, enhancing lethality and safety, was also granted. These acquisitions for the Indian Army fall under the Buy (Indian-IDDM) category.

Furthermore, the DAC approved AoNs for the procurement and integration of Automatic Target Tracker (ATT) and Digital Basaltic Computer (DBC) for T-90 tanks under the Buy (India) category, strengthening the combative edge of T-90 tanks. The procurement of Medium Range Anti-Ship Missiles (MRAShM) for the Indian Navy's surface platform under the Buy (Indian-IDDM) category was also granted. Envisioned as a lightweight Surface-to-Surface missile, the MRAShM will serve as a primary offensive weapon on Indian naval ships.

The DAC's approvals extend to the procurement of Light Combat Helicopter (LCH) for the Indian Air Force (IAF) and Indian Army, along with Light Combat Aircraft (LCA) Mk 1A for the IAF, both from Hindustan Aeronautics Limited (HAL) under the Buy (Indian-IDDM) category. Additionally, AoNs were granted for the indigenously upgraded Su-30 MKI Aircraft from HAL, reinforcing the Indian Air Force. These acquisitions aim to enhance indigenous capabilities and reduce dependency on foreign Original Equipment Manufacturers (OEMs).

In a significant move to maximize indigenization, the DAC approved a major amendment in the Defence Acquisition Procedure (DAP) 2020. Going forward, a minimum of 50% of indigenous content in the form of material, components, and software manufactured in India will be mandatory for all categories of procurement, excluding the cost of Annual Maintenance Contract (AMC)/Comprehensive Maintenance Contract (CMC)/After Sale Service.

Moreover, the DAC has taken steps to encourage start-ups/MSMEs' participation in the defence ecosystem. For procurement cases with AoN costs up to Rs 300 crore, registered MSMEs and recognized start-ups will be considered for the issuance of a Request for Proposal (RFP) without stipulating financial parameters. This flexibility can be extended up to an AoN cost of Rs 500 crore on a case-to-case basis with the approval of the Defence Procurement Board (DPB).

• Aatmanirbharta
• Anti-tank munitions
• Capital Acquisition Proposals
• DAC
• DAP
• Defence Acquisition Council
• Defence Acquisition Procedure
• Defence Procurement
• Indian Defence Industry
• Indigenous content
• LCA Mk 1A
• LCH
• Light Combat Aircraft
• Light Combat Helicopter
• MRAShM
• MSMEs
• Medium Range Anti-Ship Missiles
• Nubless projectile
• Start-ups
• T-90 tanks
• Towed Gun System