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DAC Approves AoNs for Various Acquisition Proposals worth Rs.2.23 Lakh Crore to Boost Indian Defence Sector

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Defence Acquisition Council approves proposals worth Rs 2.23 lakh croreThe Defence Acquisition Council (DAC) chaired by Union Minister Rajnath Singh, Ministry of Defence(MoD), granted approval for Acceptance of Necessity (AoNs) for diverse Capital Acquisition Proposals, worth Rs 2.23 lakh crore to enhance the operational capabilities of the Armed Forces.

  • Around 98% of the total AoN amount (Rs 2.20 lakh crore) worth acquisition will be sourced from domestic industries.
  • This is in line with efforts towards achieving self-reliance in the Indian Defence sector (Aatmanirbharta).

Key Approvals of DAC:

i.The Council has approved the procurement of 2 types of Anti-tank Munitions namely, Area Denial Munition (ADM) Type-2 and Type-3, which are capable of neutralising Tanks and Armoured personnel carriers and enemy personnel.

ii.A state-of-the-art Towed Gun System (TGS) was also approved to replace the Indian Field Gun (IFG), which has completed its service life.

iii.The AoN was also accorded for a ‘155 mm Nubless projectile’ for use in 155 mm Artillery guns which will enhance the lethality and safety of the projectiles.

iv.The procurement and integration of Automatic Target Tracker (ATT) and Digital Basaltic Computer (DBC) for T-90 Tanks under the Buy (India) category have also been accorded.

  • It will help in maintaining a combative edge of T-90 tanks over adversary platforms.

Additional Approvals:

i.The procurement of Medium Range Anti-Ship Missiles (MRAShM) for the surface platform of the Indian Navy has also been accorded.

  • The MRAShM is envisaged as a lightweight Surface-to-Surface Missile, a primary offensive weapon onboard Indian Naval Ships.

ii.In addition, the DAC has also accorded approval for the procurement of:

  • Light Combat Helicopters (LCH) for the Indian Air Force (IAF) and Indian Army; and
  • Light Combat Aircraft (LCA) Mark (Mk) 1A for IAF from Hindustan Aeronautics Limited (HAL).

iii.DAC has approved the procurement of defence equipment worth Rs.1.5 lakh crores such as 97 new LCA Mk 1A fighter aircraft and the indigenous upgrade of 84 Su-30 MKI combat planes.

  • Procurement of this equipment is set to provide substantial strength to the IAF.
  • IAF has already placed an order for 83 LCA Mark1A fighter planes, and deliveries are anticipated to commence in February-March 2024.

iv.When discussing projects worth Rs 1.3 lakh crore, DAC also approved the purchase of 97 Tejas fighter jets and the procurement of 156 PRACHAND helicopters.

Key Highlights:

i.As per the estimate, the 97 aircraft deal is valued at Rs 65,000 crore, marking it as the largest fighter aircraft deal in India’s history.

  • HAL is to lead the design and development of Tejas aircraft and is responsible for outfitting the aircraft with the latest Virupaksha Active Electronically Scanned Array (AESA) radars.

ii.Su-30MKI fleet, comprising 260 fighter jets seen as a crucial component of IAF, and its upgrade plans open opportunities for exports to Southeast Asian and African nations.


  • All these equipment will be procured under the Buy (Indian-Indigenously Designed, Developed and Manufactured (IDDM)) category.
  • Acquiring equipment domestically will lead to a reduction in dependence on foreign Original Equipment Manufacturers (OEMs).

Key Changes in Defence Acquisition Procedures:

i.To maximise indigenisation, the DAC has accorded approval for a major amendment in the Defence Acquisition Procedure (DAP) 2020.

ii.It has been decided that, in all categories of procurement cases, a minimum of 50% of indigenous content shall be in the form of materials, components, and software that are manufactured in India.

iii.For calculation of Indigenous content, the cost of the Annual Maintenance Contract (AMC)/Comprehensive Maintenance Contract (CMC)/After Sale Service shall be excluded.

iv.Also, the DAC has decided to further encourage start-ups/MSME’s participation in the defence ecosystem.

  • Registered MSMEs and recognized start-ups are eligible for Request for Proposal (RFP) in cases up to Rs 300 crore.
  • The Defence Procurement Board (DPB) for AoN can relax financial parameters for projects up to Rs.500 crore on a case-to-case basis.

Recent related News:

The Defence Acquisition Council (DAC), in its meeting on 15 September 2023, under the chairmanship of Union Minister Rajnath Singh, Ministry of Defence, granted Acceptance of Necessity (AoNs) for Capital Acquisition Proposals of various weapons systems and platforms amounting to Rs.45,000 crore.

About Ministry of Defence:
Union Minister– Raj Nath Singh (Constituency- Lucknow, Uttar Pradesh)
Minister of State– Ajay Bhatt (Constituency- Nainital-Udhamsingh Nagar, Uttarakhand)