The Defence Acquisition Council (DAC), under the leadership of Defence Minister Rajnath Singh, has approved eight capital acquisition proposals worth over Rs 54,000 crore on March 20, 2025. This major development aims to bolster India’s defence capabilities across the Army, Navy, and Air Force.
Key Approvals and Their Impact
For the Indian Army, the DAC has granted Acceptance of Necessity (AoN) for procuring a 1350 HP engine to upgrade the existing 1000 HP engine for T-90 tanks. This upgrade will enhance battlefield mobility, particularly in high-altitude regions, by improving the power-to-weight ratio.
The Indian Navy is set to strengthen its anti-submarine warfare capabilities with the approval of Varunastra Torpedoes. Developed by the Naval Science & Technological Laboratory, these indigenously-built torpedoes will significantly enhance the Navy’s defense against underwater threats.
The Indian Air Force will benefit from the procurement of Airborne Early Warning & Control (AEW&C) Aircraft Systems, which play a crucial role in modern warfare by boosting surveillance and combat effectiveness.
Additionally, in line with the ‘Year of Reforms 2025,’ the DAC has approved new guidelines to streamline and expedite the capital acquisition process, ensuring efficiency in defence procurement.
With these significant approvals, shares of Bharat Electronics Limited (BEL) and Bharat Dynamics Limited (BDL) are expected to remain in focus tomorrow, benefiting from increased defence spending and contract allocations.
