India Unleashes $26.7 Billion Arsenal: A Power Boost with 97 Tejas Jets, 156 Helicopters, and More!

The Defence Acquisition Council (DAC), chaired by Raksha Mantri Shri Rajnath Singh on November 30, 2023, granted approval regarding the Acceptance of Necessity (AoNs) for various Capital Acquisition Initiatives totaling ₹2.23 lakh crore (approximately $27.6 billion–Ed.). Of this amount, acquisitions valued at ₹2.20 lakh crore (98% of the total AoN amount) will be procured from domestic industries. This decision will significantly enhance the Indian Defence Sector in pursuit of achieving the vision of ‘Aatmanirbharta’.

The DAC has authorized the AoN for the acquisition of two varieties of anti-tank munitions, specifically Area Denial Munition (ADM) Type-2 and Type-3, which are designed to incapacitate tanks, armoured personnel carriers, and enemy combatants.

To replace the Indian Field Gun (IFG), which has reached the end of its operational life, AoN for the procurement of an advanced Towed Gun System (TGS) has been approved, which will serve as a cornerstone for the Artillery forces of the Indian Army. Additionally, AoN was sanctioned for the 155 mm Nubless projectile intended for use in 155mm artillery guns, enhancing the lethality and safety of these projectiles. All of this equipment for the Indian Army will be acquired under the Buy (Indian-IDDM) category.

The AoN for the procurement and integration of the Automatic Target Tracker (ATT) and Digital Ballistic Computer (DBC) for T-90 tanks under the Buy (India) category has also been approved, ensuring the combat superiority of T-90 tanks against adversarial platforms.

The AoN for acquiring Medium Range Anti-Ship Missiles (MRAShM) for surface platforms of the Indian Navy under the Buy (Indian-IDDM) category has similarly been granted. The MRAShM is envisioned as a lightweight surface-to-surface missile that will function as a primary offensive weapon aboard Indian naval vessels.

Additionally, the DAC has granted AoNs for procuring the Light Combat Helicopter (LCH) for the Indian Air Force (IAF) & Indian Army, as well as Light Combat Aircraft (LCA) Mk 1A for the IAF from Hindustan Aeronautics Limited (HAL) under the Buy (Indian-IDDM) category.

The DAC has also approved AoNs for the upgradation of Su-30 MKI aircraft domestically manufactured by HAL. While the acquisition of this equipment will provide significant strength to the IAF, sourcing from local defence industries will elevate indigenous capabilities to a new level, while substantially reducing dependency on foreign Original Equipment Manufacturers (OEMs).

To further promote indigenisation, the DAC has approved a substantial amendment in the Defence Acquisition Procedure (DAP) 2020. It has been determined that, moving forward, in all procurement categories, a minimum of 50% of indigenous content must be in the form of materials, components & software produced in India. For the calculation of Indigenous content, the cost of the Annual Maintenance Contract (AMC), Comprehensive Maintenance Contract (CMC), and After Sale Service will be excluded.

Moreover, the DAC has decided to enhance participation from start-ups and MSMEs in the defence ecosystem. For all procurement cases with AoN costs up to ₹300 crore, registered MSMEs and recognized start-ups will be considered for the issuance of Requests for Proposals (RFP) without any financial parameter stipulations, which can be further relaxed, upon the Defence Procurement Board (DPB)’s approval, for AoN costs up to ₹500 crore on a case-by-case basis.