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DAC Clears ₹1.1 Lakh Crore Defence Deals, 98% Procurement to Come from Indian Industry

DAC Clears ₹1.1 Lakh Crore Defence Deals, 98% Procurement to Come from Indian Industry

The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, on Monday approved a major set of defence acquisition proposals worth around ₹1.1 lakh crore, giving a significant push to India’s efforts to strengthen military preparedness and build a self-reliant defence manufacturing ecosystem.

The DAC accorded Acceptance of Necessity (AoN)—the in-principle administrative approval required to initiate the procurement process—to a range of proposals covering the Indian Army, Navy and Air Force. Significantly, around 98 per cent of the procurements approved under the AoNs will be sourced from Indian industry, highlighting the government’s emphasis on indigenous defence production.

Army to Receive CBRN Vehicles, Helicopters and Mine-Laying Systems

For the Indian Army, the DAC cleared procurement proposals for Chemical, Biological, Radiological and Nuclear (CBRN) Recce Vehicles, High Mobility Vehicles (HMVs), Self-Propelled Mechanical Mine Layers (MMLs), Advanced Light Helicopters (ALHs), Trawl Tanks and the Sarvatra Bridge System.

The CBRN reconnaissance vehicles will strengthen the Army’s ability to detect, identify and monitor hazardous contamination caused by chemical, biological, radiological or nuclear agents. The vehicles will also be capable of marking contaminated areas, enabling troops to operate more safely in affected zones.

The proposed High Mobility Vehicles are expected to improve troop mobility, logistics and operational support, particularly in difficult and challenging terrain. Meanwhile, Self-Propelled Mechanical Mine Layers will provide formations with a faster and more responsive capability for laying minefields in demanding operational environments.

The approval for Advanced Light Helicopters will add greater flexibility to the Army and Air Force for undertaking complex missions across different terrains and operational conditions. Trawl Tanks and the Sarvatra Bridge System will further enhance the ability of fighting formations to negotiate obstacles and conduct crossings during operations.

Navy's Indigenous Push Gains Momentum

The Indian Navy also received a major boost, with the DAC approving the acquisition of Arudhra Radars as well as the design, development and subsequent procurement of Marine Gas Turbines (MGTs).

The Arudhra Radars will replace existing Air Route Surveillance Radars deployed at various Naval Air Stations, strengthening air surveillance and situational awareness around naval facilities.

The decision to pursue indigenous Marine Gas Turbines is particularly significant as MGTs form an important part of warship propulsion systems. Developing and procuring these systems domestically is aimed at reducing the Navy’s dependence on foreign suppliers while building indigenous expertise in a strategically important technology.

Air Force to Strengthen Electronic Warfare and Security

For the Indian Air Force, the DAC approved a series of acquisitions designed to enhance the war-fighting capabilities of fighter aircraft, transport platforms and helicopters.

The Council cleared the procurement of Ground-Based Multi-Purpose Jammers (GBMPJs), which are intended to counter adversary radar systems through electronic jamming. Such systems can play an important role in electronic warfare by disrupting an opponent’s ability to detect, track or respond to airborne assets.

The DAC also approved the installation of the Defence Forces Secure Access Card (DEFSAC) System. The system will replace conventional paper-based identity cards, passes and permits with an interoperable, Radio Frequency Identification (RFID)-based smart card system, improving security, access control and administrative efficiency across defence establishments.

98% Indigenous Procurement Marks Key Shift

The most notable aspect of the latest DAC approvals is the high level of domestic sourcing. With approximately 98 per cent of the approved procurement set to come from Indian industry, the decisions are expected to generate substantial opportunities for Indian defence manufacturers and strengthen the domestic supply chain.

The move also reflects the broader objective of reducing dependence on imported military equipment while encouraging Indian companies to develop advanced defence technologies and systems.

With a diverse mix of mobility platforms, reconnaissance systems, helicopters, radars, electronic warfare equipment, bridging systems and propulsion technologies receiving the green light, the latest approvals represent a broad-based effort to modernise India’s armed forces.

The ₹1.1 lakh crore package therefore carries significance beyond the immediate acquisition of military hardware. By directing the overwhelming majority of procurement towards Indian industry, the DAC has reinforced the twin priorities of operational modernisation and defence self-reliance, potentially giving another major boost to India's indigenous defence manufacturing ambitions.

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