File photo of MiG 29K aircraft
File photo of MiG 29K aircraft
Business & Economy

DAC approves capital acquisition of various defence platforms & equipment worth Rs 38,900 crore

NetIndian News Network

New Delhi, July 2, 2020

The Defence Acquisition Council (DAC) today approved capital acquisition of various platforms and equipment worth Rs 38,900 crore, including the procurement of 21 MiG-29 fighter jets along with upgradation of existing 59 MiG-29s and procurement of 12 Su-30 MKI aircraft.

An official press release said the decision would address the long-felt need of the Indian Air Force (IAF) to increase its fighter squadrons.

While the MIG 29 procurement and upgradation from Russia is estimated to cost Rs 7,418 crore, the Su-30 MKI will be procured from Hindustan Aeronautics Limited (HAL) at an estimated cost of Rs 10,730 crore, it said.

The release said the focus of the acquisitions cleared todayy would be on indigenous design and development. The acquisitions from Indian industry is estimated to be around Rs 31,130 crore.

The equipment to be manufactured in India involves the Indian defence industry with the participation of several MSMEs as prime-tier vendors. The indigenous content in some of these projects is up to 80%of the project cost.

A large number of these projects have been made possible due to Transfer of Technology (ToT) by Defence Research and Development Organisation (DRDO) to the indigenous industry.

These include Pinaka ammunitions, BMP armament upgrades and software-defined radios for the Indian Army, Long Range Land Attack Cruise Missile Systems and Astra Missiles for the Indian Navy and Indian Air Force (IAF). The cost of these design and development proposals is in the range of Rs 20,400 crore.

The release said acquisition of new and additional missile systems will add to the fire power of the three Services. While the acquisition of the Pinaka missile systems will enable raising additional regiments over and above the ones already inducted, the addition of Long-Range Land Attack Missile Systems having a firing range of 1,000 kilometres to the existing arsenal will bolster the attack capabilities of the Navy and the Air Force.

Similarly, induction of Astra Missiles having Beyond Visual Range capability will serve as a force multiplier and immensely add to the strike capability of the Navy and Air Force, the release added.

NNN

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