The Defence Acquisition Council (DAC), under the chairmanship of Raksha Mantri Mr.
Rajnath Singh, approved capital acquisition proposals worth a total of cost of
over Rs 3.84 lakh crore since January 2025, to enhance the country’s defence
readiness, with focus on modernisation through indigenisation.
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On July 3, 2025, DAC
accorded Acceptance of Necessity (AoNs) for 10 capital acquisition proposals
amounting to approx. Rs 1.05 lakh crore through indigenous sourcing. These were
accorded for procurement of Armoured Recovery Vehicles, Electronic Warfare
System, Integrated Common Inventory Management System for the Tri-Services and
Surface-to-Air Missiles. These procurements will provide higher mobility,
effective air defence, better supply chain management and augment the
operational preparedness of the Armed Forces. AoNs were also accorded for
procurement of Moored Mines, Mine Counter Measure Vessels, Super Rapid Gun
Mount and Submersible Autonomous Vessels. These procurements will enable
mitigation of potential risks posed to the Naval and Merchant Vessels. To provide
further impetus to indigenous design and development, AoNs were accorded under
the Buy (Indian-Indigenously Designed Developed and Manufactured) category.
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On December 29, 2025,
DAC cleared capital acquisition proposals worth about Rs 79,000 crore to
enhance the capabilities of the Armed Forces. These include Loiter Munition
System for Artillery Regiments, Low Level Light Weight Radars, Long Range
Guided Rocket Ammunition for Pinaka Multiple Launch Rocket System &
Integrated Drone Detection & Interdiction System Mk-II for Indian Army;
Bollard Pull Tugs, High Frequency Software Defined Radios Manpack and for
leasing High Altitude Long Range Remotely Piloted Aircraft System for the
Indian Navy; and Automatic Take-off Landing Recording System, Astra Mk-II
Missiles, Full Mission Simulator and Spice-1000 Long Range Guidance Kits for
the Indian Air Force.
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On October 23, 2025, DAC
approved various proposals amounting to a total of about Rs 79,000 crore. These
include Nag Missile System (Tracked) Mk-II, Ground Based Mobile ELINT System,
and High Mobility Vehicles with Material Handling Crane for Indian Army;
Landing Platform Docks, 30mm Naval Surface Gun, Advanced Light Weight
Torpedoes; Electro Optical Infra-Red Search and Track System, and Smart
Ammunition for 76mm Super Rapid Gun Mount for Indian Navy; and Collaborative
Long Range Target Saturation/Destruction System and other proposals for the
Indian Air Force.
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On August 5, 2025, DAC
cleared various proposals amounting to a total cost of about Rs 67,000 crore.
These include Thermal Imager-based Driver Night Sight for BMP for the Indian
Army; Compact Autonomous Surface Craft, BrahMos Fire Control System &
Launchers and Upgradation of Barak-1 Point Defence Missile System of the Indian
Navy; Mountain Radars and upgradation of Saksham/Spyder Weapon System for the
Indian Air Force; Medium Altitude Long Endurance Remotely Piloted Aircraft for
the three Services; and sustenance of C-17 and C-130J fleets and comprehensive
annual maintenance contract of S-400 Long Range Air Defence Missile System.
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On March 20, 2025, DAC
gave nod to eight capital acquisition proposals amounting to over Rs 54,000
crore. These include 1350 HP Engine to upgrade the present 1000 HP Engine
for the T-90 Tanks of the Indian Army; Varunastra Torpedoes (Combat) for the
Indian Navy; Airborne Early Warning & Control (AEW&C) Aircraft Systems
for the Indian Air Force; and guidelines for reducing the timelines at various
stages of the Capital Acquisition Process to make it faster, more effective
& efficient as part of ‘Year of Reforms’.
Major Contracts/Agreements
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LCA
Mk1A: Ministry of Defence
signed a contract with HAL for procurement of 97 Light Combat Aircraft (LCA) Mk.1A,
including 68 fighters and 29 twin seaters, along with associated equipment, for
the Indian Air Force, at a cost of over Rs 62,370 crore (excluding taxes), on
September 25, 2025. The delivery of these aircraft would commence during
2027-28 and be completed over a period of six years. The aircraft will have an
indigenous content of over 64%, with 67 additional items incorporated, over and
above the previous LCA Mk.1A contract signed in January 2021. The integration
of advanced indigenously developed systems such as the Uttam Active
Electronically Scanned Array (AESA) Radar, Swayam Raksha Kavach, and control
surface actuators will further strengthen the Aatmanirbharta initiatives. HAL
entered into an agreement with General Electric Company, USA, on November 7,
2025 for the supply of 113 F404-GE-IN20 engines and support package for the
execution of 97 LCA Mk.1A programme. The engine deliveries would be from 2027
to 2032.
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Rafale-M: In April 2025, the Governments of India and
France signed an Inter-Governmental Agreement (IGA) for the procurement of 26
Rafale Aircraft (22 Single-Seater and four Twin-Seater) for the Indian Navy. It
includes Training, Simulator, Associated Equipment, Weapons and Performance Based
Logistics. It also includes additional equipment for the existing Rafale fleet
of the Indian Air Force. In line with the Government's thrust on Aatmanirbhar
Bharat, the agreement includes Transfer of Technology for integration of
indigenous weapons in India. It also includes setting up of production facility
for Rafale Fuselage as well as Maintenance, Repair and Overhaul facilities for
aircraft engine, sensors and weapons in India. The delivery of these aircraft
would be completed by 2030, with the crew undergoing training in France and
India.
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LCH
Prachand: Ministry of Defence,
on March 28, 2025, signed two contracts with HAL for supply of 156 Light Combat
Helicopters (LCH) Prachand along with training and other associated equipment
worth Rs 62,700 crore, excluding taxes. The first contract is for supply of 66
LCHs to the Indian Air Force and second is for supply of 90 LCHs to the Indian
Army. The supply of these helicopters shall commence from the third year and
will be spread over the next five years. The contracts will enhance the combat
capability of the Armed Forces at high altitudes. This helicopter has a large
number of components designed and manufactured in India and it is planned to
achieve an overall indigenous content of over 65% during the execution of this
procurement. MoD also signed a contract with Metrea Management for Wet Leasing
of one Flight Refuelling Aircraft for providing Air to Air refuelling training
to pilots of IAF and Indian Navy. Metrea will provide FRA (KC135 aircraft)
within six months which will be the first FRA to be wet leased by IAF. With
signing of these three contracts, the total number of contracts signed by MoD
during 2024-25 reaches to 193 with overall contract value exceeding Rs 2,09,050
crore, which is the highest ever and nearly double the previous highest figure.
Out of these, the contracts to domestic industry are 177 (92%) with contract
value Rs 1,68,922 Crore (81%).
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Bharat
Electronics Limited: The contracts were
signed for upgrades in Shakti Software; EON-51 (Electro Optical Fire Control
systems) for New Generation Offshore Patrol Vessels and Cadet Training Ships
for Indian Navy; Software Defined Radios for Indian Coast Guard; and Air
Defence Fire Control Radars for the Indian Army.
·
Bharat
Dynamics Limited: A contract was inked
for Medium-Range Surface-to-Air Missiles for Indian Navy.
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Armoured
Vehicle Nigam Limited: Contracts were signed
for Tank-72 Bridge Laying Tanks and Nag Missile System (NAMIS) Tracked version
of anti-tank weapon platform for the Indian Army.
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Economic
Explosive Limited: A contract was inked
for Area Denial Munition (ADM) Type-1 (DPICM) for PINAKA Multiple Launch Rocket
System of Indian Army.
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Munitions
India Limited: A contract was signed
for High Explosive Pre Fragmented (HEPF) Mk-1 (Enhanced) rockets for PINAKA
Multiple Launch Rocket System of Indian Army.
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Private
sector: The contracts include
155mm/52 Calibre Advanced Towed Artillery Gun Systems (ATAGS) with Bharat Forge
Limited; Rough Terrain Fork Lift Trucks with ACE Limited and JCB India Limited
for the three Services; 5,000 Light Vehicles for
the Armed Forces with Force Motors Ltd and Mahindra & Mahindra Ltd; Joint
Venture Cooperation Agreement for production of HAMMER Smart Precision Guided
Air-to-Ground Weapon and local manufacturing of two high-precision,
combat-proven systems - SIGMA 30N Digital Ring Laser Gyro Inertial Navigation
System, used in artillery guns, air defence systems, missiles & radars and
CM3-MR Direct Firing Sight, designed for artillery guns and anti-drone systems
– with Safran; CQB Carbine with Bharat Forge Ltd and PLR Systems Pvt Ltd and
procurement and integration of 48 Heavy Weight Torpedoes with WASS Submarine
Systems S.R.L., Italy.
Aatmanirbharta in Ammunition Manufacturing
32 variants of ammunition have been offered to the Indian Industry
for long term contracts under ‘Manufacturing of Ammunition for IA by Indian
Industry, a Government of India Initiative’. These are being progressed as 12
procurement cases (clubbed based on calibre/ platform) amounting to Rs. 15,899
Crore. Four cases worth Rs. 5,696 Cr have been placed with DPSUs & Private
players and balance cases are at advance stages of evaluation and likely to
fructify during the next six to twelve months. Most of these ammunition are
likely to be indigenised by 2027-28.
Indian
Army has a clear roadmap as part of the Aatmanirbharta vision for 10 years.
In the Phase-I (2025-26), indigenisation (including private
industry) for all import dependent ammunition for major
platforms is underway for a total of 32 variants amounting to Rs. 15,899 Cr. In
Phase-II (2026-27), five additional ammunition have been identified for
production through Indian Industry to expand vendor base and secure stock
affected by supply chain disruption. In Phase-III (2027 onwards), the
experience and expertise gained in first two
Phases would provide the requisite wherewithal in terms of
infrastructure and technology, laying the foundation
for indigenous development
of next generation of hi-tech ammunition based on indigenous
R&D in niche technology and Indian IPR for the world market. The aim of the
Aatmanirbhar project is to
build up ammunition stocks to desired levels, minimise imports and achieve
self-sufficiency in the country as also establish at least two sources
for each type of ammunition, obtain critical technologies and set up
manufacturing infrastructure and capability.
The
Indian Army has a large inventory of ammunition,
currently comprising 175 scaled in-service variants ranging from ammunition for
vintage platforms to advance precision guided munitions. Through concerted
efforts and close coordination with DRDO, DPSUs and Private Industry, 159
ammunition variants (90.85%) have been indigenised and are being sourced from
indigenous source (single source - 110 and more than one source – 49).