Ministry of Defence
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Defence Acquisition Council approves proposals worth Rs 13,165 crores

New Delhi, September 30, 2021

The Defence Acquisition Council (DAC) accorded Acceptance of Necessity (AoN) for Capital Acquisition proposals for modernization and operational needs of the Indian Armed Forces amounting to approximately Rs 13,165 crore on Wednesday.

Of the total amount approved in the meeting chaired by Defence Minister Rajnath Singh, procurement worth Rs 11,486 crores (87%) is from domestic sources, the Defence Ministry said in a press release.

Key approvals include helicopters, guided munition and rocket ammunition.

Looking into the needs of the Indian Army for an Advanced Light Helicopters (ALH) Squadron, to improve its integral lift capability ensuring its operational preparedness, the DAC accorded approval of procurement of 25 ALH Mark III helicopters from Hindustan Aeronauticals Limited (HAL) under Buy Indian-IDDM at an approximate cost of Rs 3,850 crore, in keeping with the continued thrust towards "Aatmanirbhar Bharat" (Self-Reliant India) and "Make in India’.

Giving a boost to the indigenous design and development of ammunitions, DAC accorded approval for procurement of Terminally Guided Munition (TGM) and HEPF/RHE Rocket Ammunition under Buy (Indian-IDDM) category at an approximate cost of Rs 4,962 crore from domestic sources. Other proposals worth Rs 4,353 crore were also accorded AoN by the DAC.

The DAC has also approved a few amendments to the DAP 2020 as a part of Business Process re-engineering to ensure further ease of doing business for the industry as well as measures to enhance procurement efficiency and reducing timelines, the release added.


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