Catching up with China: India clears defence procurement worth over $10 billion


India clears defence purchase worth over $10 billion: India’s apex defence procurement body, the defence acquisition council (DAC) has approved the acceptance of necessity for 24 capital acquisition process worth $10.18 billion (INR 84,328 crores) for the country’s military and Indian coast guard, saying that majority of the procurement (over 97%) will be from the local defence companies and vendors.

According to officials, of the total proposed procurement of $10.18 billion, 97.4 per cent or the procurement worth over $9.9 billion would be from indigenous sources.

Acceptance of Necessity (AoN) is the formal approval for defence forces to begin the acquisition process that kick-starts the process for seeking proposals from the vendors and eventually culminates in the tendering process leading for formal acquisition of the weapon system.

Officials said these proposals, which have been cleared on Thursday, include futuristic infantry combat vehicles, light tanks, naval anti-ship missiles, multi-purpose vessels, new range of missile system, long range guided bombs & next generation offshore patrol vessels.

Garuda Howitzer Gun by India's Kalyani Systems.

Garuda Howitzer Gun by India’s Kalyani Systems.

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“The Defence Acquisition Council (DAC), headed by the defence minister Rajnath Singh, in its meeting held on December 22, 2022, has accorded approval for Acceptance of Necessity (AoN) for 24 Capital Acquisition Proposals,” the ministry of defence said in a statement.

These proposals include six for Indian Army, six for Indian Air Force, 10 for Indian Navy and two for Indian Coast Guard for a total value of Rs 84,328 crore ($10.18 billion).

The MoD said that 21 proposals, worth Rs 82,127 crore ($9.9 billion) or 97.4% of the total proposed procurement, are approved for procurement from indigenous sources.

Akash Prime Missile.

India’s Akash Prime Missile.

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“This unprecedented initiative of DAC will not only modernise the Armed Forces but also provide substantial boost to the defence industry to achieve the goal of a self-reliant India (Aatmanirbhar Bharat),” it said.

These acceptances of necessity (AoNs) proposals will equip the Indian Army with platforms and equipment such as Futuristic Infantry Combat Vehicles, Light Tanks and Mounted Gun System providing a quantum jump to Indian Army’s operational preparedness.

The proposals also includes procurement of Ballistic Helmets, with enhanced protection level, for our soldiers.

“Approvals for procurement of Naval Anti-Ship Missiles, Multi-Purpose Vessels and High Endurance Autonomous Vehicles will further enhance maritime strength giving boost to Indian Navy’s capabilities,” said the government.

Arjun MBT firing laser guided ATGM

Laser guided ATGM fired from India’s Arjun Main Battle Tank.

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Officials said Indian Air Force will be further strengthened with enhanced lethal capabilities by induction of new range of missile system, long range guided bombs, range augmentation kit for conventional bombs and advanced surveillance systems.

“The procurement of Next Generation Offshore Patrol Vessels for Indian Coast Guard will enhance surveillance capability in the coastal areas to new heights,” the ministry added.

ALH Mark III Helicopter.

India’s Advanced Light Helicopter Mark III.

*1 USD = 82.8229 INR

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