DAC approves proposals of value Rs.13,165 cr and 7,965 cr

The Defence Acquisition Council ( DAC) in its meeting of 29 September 2021 and further on 2 November 2021 held under the Chairmanship of Raksha Mantri Mr. Rajnath Singh accorded Acceptance of Necessity (AoN) for Capital Acquisitions proposals for modernisation and operational needs of the Indian Armed Forces amounting to approx. Rs.13,165cr. Of the total amount approved, procurement worth Rs. 11,486cr. (87%) is from the domestic sources. Later, the Defence Acquisition Council (DAC), in its meeting of 2 November 2021 held under the chairmanship of the Defence Minister, accorded Acceptance of Necessity (AoN) for capital acquisition proposals for modernisation and operational needs of the Armed Forces amounting to Rs 7,965 crore. All of these proposals (100%) are under ‘Make in India’ with focus on design, development and manufacturing in India.

Key approvals include helicopters, guided munition and rocket ammunition. Looking into the need of the Indian Army for an Advanced Light Helicopters (ALH) Squadron, to improve its integral lift capability ensuring its operational preparedness, the DAC accorded approval of procurement of 25 ALH Mark III helicopters from HAL under Buy Indian-IDDM at an approx. cost of Rs.3,850 cr in keeping with the continued thrust towards ‘Aatmanirbhar Bharat’ and ‘Make in India’. Giving boost to Indigenous Design and Development of ammunitions, DAC accorded approval for procurement of Terminally Guided Munition (TGM) and HEPF/RHE Rocket Ammunition under Buy (Indian-IDDM) category at an approx cost of Rs.4,962 cr. from domestic sources. Other proposals worth Rs. 4,353 cr. were also accorded AoN by the DAC.

In addition, the DAC also approved a few amendments to the DAP 2020 as a part of Business Process Re-engineering to ensure further ease of doing business for the industry as well as measures to enhance procurement efficiency and reducing timelines.

More key approvals in November were the procurement from domestic sources include twelve Light Utility Helicopters from Hindustan Aeronautics Limited (HAL); Lynx U2 Fire Control System from Bharat Electronics Limited (BEL) which will enhance the detection tracking and engagement capabilities of naval war ships and Mid Life Upgradation of the Dornier 228 aircraft from HAL to increase the naval capabilities in maritime reconnaissance and coastal surveillance.

As a further impetus to ‘Aatmanirbhar Bharat’, a global procurement case of naval guns has been foreclosed with these guns’ quantity added to the upgraded Super Rapid Gun Mount (SRGM) being manufactured by Bharat Heavy Electricals Limited ( BHEL). These SRGMs provide niche capabilities of engaging fast manoeuvring targets using guided munitions and range extensions and are to be fitted on the warships of the Indian Navy.