Defence Ministry to Discuss Mega Military Projects Worth Around Rs 2.23 lakh Crore

In a groundbreaking move towards bolstering indigenisation efforts in the defense sector, the Defence Acquisition Council (DAC) recently granted approval for Acceptance of Necessity (AoNs) for various Capital Acquisition Proposals totaling Rs 2.23 lakh crore. Notably, an overwhelming 98% of this amount, equivalent to Rs 2.20 lakh crore, is earmarked for sourcing from domestic industries. This significant step aligns with the broader objective of achieving self-reliance (Aatmanirbharta) in the Indian Defence Industry.

The DAC approvals span a range of critical projects, including the procurement of Anti-tank Munitions, such as Area Denial Munition (ADM) Type - 2 and Type-3, designed to neutralize Tanks, Armored personnel carriers, and enemy personnel. Additionally, an AoN has been granted for the 400 state-of-the-art Towed Gun System (TGS) an estimated cost of around Rs 6,500 crore to replace the Indian Field Gun (IFG), marking a pivotal addition to the artillery forces of the Indian Army. The acquisition also includes the 155 mm Nubless projectile for use in 155 mm Artillery guns, enhancing both lethality and safety. These acquisitions will be conducted under the Buy (Indian-IDDM) category.

Furthermore, the DAC nod includes procurement and integration of Automatic Target Tracker (ATT) and Digital Basaltic Computer (DBC) for T-90 Tanks, supporting the maintenance of a combative edge for T-90 tanks over adversary platforms. The procurement of Medium Range Anti-Ship Missiles (MRAShM) for the surface platform of the Indian Navy under the Buy (Indian-IDDM) category has also been approved. The MRAShM is envisioned as a lightweight Surface-to-Surface Missile, serving as a primary offensive weapon onboard Indian Naval Ships.

Expanding the scope, the DAC has given the green light for the procurement of 156 Light Combat Helicopter (LCH) for the Indian Air Force (IAF) and Indian Army, along with 97 Light Combat Aircraft (LCA) Mk 1A for IAF, both sourced from Hindustan Aeronautics Limited (HAL) under the Buy (Indian-IDDM) category. Additionally, approvals have been granted for the upgradation of Su-30 MKI Aircraft indigenously from HAL. These acquisitions not only enhance the strength of the IAF but also elevate indigenous capabilities, reducing dependency on foreign Original Equipment Manufacturers (OEMs).

To further maximize indigenisation, the DAC has approved a major amendment in the Defence Acquisition Procedure (DAP) 2020. Going forward, a minimum of 50% indigenous content in the form of material, components, and software manufactured in India will be a requirement across all procurement categories. This move is complemented by a decision to encourage start-ups/MSMEs participation in the defense ecosystem, with registered MSMEs and recognized start-ups being considered for the issue of Request for Proposal (RFP) in procurement cases with AoN cost up to Rs 300 crore, potentially relaxable up to Rs 500 crore on a case-to-case basis with DPB approval.