On 29th September 2021, the Defence Acquisition Council (DAC) under the Chairmanship of Defence Minister Rajnath Singh approved the Acceptance of Necessity (AoN) for defence procurement worth Rs. 13,165 crores for modernisation of Indian Armed Forces.
i.87% (Rs. 11,486 crores) of the Rs. 13,165 crores were approved for domestic procurement to boost ‘Make in India’ in the Defence Sector.
ii.The Capital Acquisition includes the purchase of Helicopters, Rockets & guided munitions for the use of Indian Army, Navy & Air Force.
iii.DAC made amendments to the Defence Acquisition Procedure (DAP) 2020, to increase the ease of doing business in the defence sector. .
- Hindustan Aeronautics Limited (HAL) to manufacture 25 Advanced Light Helicopters (ALH) Mark III helicopters for the Indian Army at an approx cost of Rs. 3,850 crores.
- Terminally Guided Munition (TGM) and HEPF/RHE Rocket Ammunition to be procured at a cost of Rs. 4,962 crores from Indian defence manufacturers.
Recent Related News:
In June 2021, the Defence Acquisition Council (DAC) approved Request For Proposal (RFP) for construction of 6 Conventional Submarines at a cost of Rs. 43,000 crores and allocated Rs. 6,000 crores for modernisation of Indian Army’s Air Defence Guns.
About Ministry of Defence:
Union Minister – Rajnath Singh (Lucknow, Uttar Pradesh)
Minister of State – Ajay Bhatt (Nainital-Udhamsingh Nagar, Uttarakhand)