Under the direction of Defense Minister Shri Rajnath Singh, the Defence Acquisition Council (DAC) approved the Acceptance of Necessity (AoNs) for capital acquisition proposals of Rs 2.23 lakh crore on November 30, 2023. The sanctioned amount of Rs 2.20 lakh crore, or 98% of the total, will be sourced locally, encouraging ‘Aatmanirbharta’ in the Indian defence sector.
Two Anti-tank Munitions (Area Denial Munition, or ADM) Type-2 and Type-3, intended to eliminate tanks, armoured personnel carriers, and hostile personnel, were approved by the DAC for purchase. The Indian Army’s artillery forces will have a state-of-the-art Towed Gun System (TGS) as a pillar after the DAC approved AoN’s request to replace the Indian Field Gun (IFG). Furthermore, AoN was given permission to purchase 155 mm Nubless projectiles under the Buy (Indian-IDDM) category, which will increase lethality and safety for 155 mm artillery weapons.
To strengthen the fighting edge of T-90 tanks over enemy platforms, the DAC also authorised AoN for the acquisition as well as integration of Automatic Target Tracker (ATT) and Digital Basaltic Computer (DBC) for T-90 Tanks. Another AoN was granted for the purchase of Medium Range Anti-Ship Missiles (MRAShM) under the Buy (Indian-IDDM) category. These missiles will be used as the main offensive weapon on Indian Naval Ships and will be installed on the surface platforms of the Indian Navy.
Additionally, under the Buy (Indian-IDDM) category, the DAC awarded AoNs for the purchase of Light Combat Helicopters (LCH) for the Indian Army and Air Force (IAF) and Light Combat Aircraft (LCA) Mk 1A for the IAF from Hindustan Aeronautics Limited (HAL). AoNs for the locally upgraded Su-30 MKI aircraft from HAL were also granted by the DAC. By strengthening the IAF and enhancing domestic capabilities, this calculated action lessens reliance on foreign Original Equipment Manufacturers (OEMs).
The Defence Acquisition Procedure (DAP) 2020 saw a major revision adopted by the DAC with the aim of optimising indigenization. From now on, it will be mandatory for all procurement categories to have a minimum of 50% indigenous content, which can include components, software, and materials made in India. AoN procurement cases up to Rs 300 crore would examine requests for proposals (RFPs) from registered MSMEs and recognized start-ups, as part of the DAC’s initiative to support start-ups and MSMEs in the defence ecosystem. With DPB permission, this ceiling may be lowered on an individual basis for AoN costs up to Rs 500 crore.
