India : The Defence Acquisition Council (DAC) has sanctioned capital acquisition proposals totaling Rs 84,560 crore to enhance the capabilities of the Armed Forces and the Indian Coast Guard. These proposals encompass a range of items such as new generation anti-tank mines, Air Defence Tactical Control Radar, Heavy Weight Torpedoes, Medium Range Maritime Reconnaissance & Multi-Mission Maritime Aircraft, Flight Refueller Aircraft & Software Defined Radios. Additionally, amendments to the Defence Acquisition Procedure 2020 have been approved to facilitate the procurement of advanced technologies from Start-Ups & MSMEs.

  • The Defence Acquisition Council (DAC), chaired by Raksha Mantri Shri Rajnath Singh, has granted approval for Acceptance of Necessity (AoNs) for various capital acquisition proposals totaling Rs 84,560 crore. In alignment with the ‘Aatmanirbharta’ initiative, the approvals granted on February 16, 2024, notably prioritize the procurement of equipment from Indian vendors.
  • Under the Buy {Indian-Indigenously Designed Developed and Manufactured (IDDM)} category, the DAC has approved AoN for the procurement of a new generation of Anti-tank mines featuring seismic sensors and remote deactivation capabilities with added safety features. Additionally, AoN has been accorded for the procurement of Canister Launched Anti-Armour Loiter Munition System to bolster the operational effectiveness and dominance in engaging Beyond Visual Line of Sight targets by Mechanised Forces.
  • To enhance Air Defence Systems capabilities, particularly in detecting slow, small, and low-flying targets, as well as surveillance, detection, and tracking of different targets, AoN has been granted for the procurement of Air Defence Tactical Control Radar under the Buy (Indian-IDDM) category.
  • The DAC has also granted AoN for the procurement of Medium Range Maritime Reconnaissance and Multi-Mission Maritime Aircraft through the Buy and Make category, aimed at strengthening the surveillance and interdiction capabilities of the Indian Navy and the Indian Coast Guard (ICG) across the nation’s vast maritime domain.
  • In efforts to stay ahead of potential threats posed by adversaries, AoN has been accorded for the procurement of Active Towed Array Sonar under the Buy (Indian) category, offering long-range detection capabilities of adversary submarines. Additionally, AoN has been granted for the procurement of Heavy Weight Torpedoes to enhance the attacking capabilities of Kalvari Class submarines. The DAC has also approved AoN for sustainment support through Follow On Support (FOS) and Repair Replenishment support through Follow On Supply Support (FOSS) for 24 MH60R aircraft under the Foreign Military Sale route with the US Government.
  • To enhance the operational capabilities and reach of the Indian Air Force, AoN has been granted for the procurement of Flight Refueller Aircraft. Furthermore, AoN has been approved under the Buy (Indian-IDDM) category for the procurement of Software Defined Radios for the ICG, fulfilling the requirement for high-speed communication with secure networking capability for seamless information exchange between the ICG and the Indian Navy units.
  • In line with the goal of creating a conducive defence start-up ecosystem and promoting the procurement of advanced technologies from start-ups and MSMEs developed under the Innovations for Defence Excellence (iDEX) and Technology Development Fund schemes, the DAC has endorsed amendments in the Defence Acquisition Procedure (DAP) 2020. These amendments pertain to benchmarking and cost computation, payment schedule, procurement quantity, etc., providing the necessary incentives and a supportive business environment for start-ups and MSMEs under iDEX and TDF schemes, in alignment with the spirit of ‘Ease of Doing Business’.

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