The Defence Acquisition Council (DAC), led by Defence Minister Rajnath Singh on November 30, 2023, granted approval for Acceptance of Necessity (AoNs) totalling Rs 2.23 lakh crore. An impressive 98 percent of this amount, equating to Rs 2.20 lakh crore, will be sourced domestically, marking a significant stride towards achieving the goal of ‘Aatmanirbharta.’
The DAC’s nod includes the procurement of two types of Anti-tank Munitions, Area Denial Munition (ADM) Type – 2 and Type-3, capable of neutralising Tanks, Armoured personnel carriers, and enemy personnel. To replace the Indian Field Gun (IFG) that has reached the end of its service life, AoN has been granted the state-of-the-art Towed Gun System (TGS), set to become a cornerstone for the Indian Army’s Artillery forces. Additionally, AoN was accorded for the 155 mm Nubless projectile, enhancing the lethality and safety of projectiles, all to be procured under the Buy (Indian-IDDM) category.
Further strengthening the Indian Army, AoN was granted for the procurement and integration of Automatic Target Tracker (ATT) and Digital Basaltic Computer (DBC) for T-90 Tanks under the Buy (India) category. This move aims to maintain the combative edge of T-90 tanks over adversary platforms.
The DAC also approved AoNs for the procurement of Medium Range Anti-Ship Missiles (MRAShM) for Indian Navy surface platforms under the Buy (Indian-IDDM) category. Envisioned as a lightweight Surface-to-Surface Missile, the MRAShM will serve as a primary offensive weapon aboard Indian Naval Ships.
Moreover, DAC’s approval extends to the procurement of Light Combat Helicopter (LCH) for Indian Air Force (IAF) & Indian Army and Light Combat Aircraft (LCA) Mk 1A for IAF from Hindustan Aeronautics Limited (HAL) under the Buy (Indian-IDDM) category. This not only strengthens the IAF but also elevates indigenous capabilities, reducing dependence on foreign Original Equipment Manufacturers (OEMs).
To maximize indigenisation, the DAC approved a significant amendment in the Defence Acquisition Procedure (DAP) 2020. Going forward, a minimum of 50 percent of indigenous content, in the form of material, components, and software manufactured in India, shall be mandatory in all categories of procurement cases.
The DAC also aims to encourage startups/MSMEs, allowing registered MSMEs and recognized startups to be considered for Request for Proposal (RFP) issuance in procurement cases up to Rs 300 crore, with the possibility of relaxation up to Rs 500 crore, subject to Defence Procurement Board (DPB) approval on a case-by-case basis.