DAC clears ₹1.05 lakh crore to boost defence capabilities of Indian armed forces

DAC clears ₹1.05 lakh crore to boost defence capabilities of Indian armed forces

The defence acquisition council (DAC) on Thursday gave its initial approval to purchase military hardware worth ₹1.05 lakh crore to sharpen the capabilities of the Indian armed forces.

Defence minister Rajnath Singh with women defence personnel at the Northern Command HQ in Udhampur. (Photo from X)

The purchase plans involve minesweepers, quick-reaction surface-to-air missiles and electronic warfare systems to armoured recovery vehicles, the defence ministry said.

The DAC, headed by Union defence minister Rajnath Singh, accorded its acceptance of necessity (AoN) to 10 capital acquisition proposals through the indigenous route to boost self-reliance in the defence manufacturing sector, it said. Under India’s defence procurement rules, AoN by the council is the first step towards buying military equipment.

The acquisition of mine countermeasure vessels (MCMVs) or minesweepers for the Indian Navy at an estimated cost of around ₹44,000 crore is the most significant proposal cleared by the DAC — India’s apex military procurement body, officials aware of the matter said.

The development is significant as the navy currently does not operate even a single minesweeper, with the last in a fleet of six such vessels (bought from the erstwhile Soviet Union in the late 1970s) being decommissioned six years ago. The navy plans to buy 12 MCMVs from Indian shipyards to strengthen its mine-warfare capabilities.

Apart from the minesweepers, the DAC also accorded AoN for moored mines, super rapid gun mount and submersible autonomous vessels. “These procurements will enable mitigation of potential risks posed to the naval and merchant vessels,” the defence ministry said in a statement.

The latest attempt to buy the MSMVs comes after at least three failed attempts during the last 17-18 years.

Two years ago, the navy indicated that the MSMV order could be split between the lowest and the second-lowest bidding shipyards in the ratio of 8:4. To be sure, the navy will induct the first MSMV at least seven years after a contract is signed, with the remaining to join service over six to seven years thereafter, the officials said, asking not to be named.

The quick-reaction surface-to-air missiles cleared by the DAC are expected to cost around ₹30,000 crore, HT learns.

“AoN were accorded for procurement of armoured recovery vehicles, electronic warfare systems, integrated common inventory management system for the tri-services and surface-to-air missiles. These procurements will provide higher mobility, effective air defence, better supply chain management and augment the operational preparedness of the armed forces,” the ministry added.

The DAC has cleared the proposals under Buy (Indian-IDDM) category. It is the most important category of acquisition for indigenisation under the defence procurement policy. IDDM stands for indigenously designed, developed and manufactured.

The council’s approval for the new weapons and systems comes at a critical moment as the defence ministry said on June 19 that it has set up a high-powered committee, headed by the director general (acquisition), to steer a comprehensive review of the Defence Acquisition Procedure (DAP) 2020 for speedy modernisation of the armed forces and boosting self-reliance in the critical sector.

The panel — including senior officers from the ministry, representatives from the defence industry and academia — is currently holding consultations with the stakeholders and has invited suggestions from them by July 5.

The aim of the review, the ministry said, is to meet the operational requirements and modernisation needs of the armed forces in a timely manner to ensure national security and achieve ‘atmanirbharta’ (self-reliance) goals by promoting technology infusion through indigenously designed and developed systems.

It also seeks to boost the Make-in-India initiative by promoting defence manufacturing through facilitation of joint ventures and transfer of technology for the private sector, encouraging foreign original equipment manufacturers to invest in the country and establish India as a global defence manufacturing and MRO (maintenance, repair and overhaul) hub.