The Defence Acquisition Council (DAC) chaired by Raksha Mantri Shri Rajnath Singh made groundbreaking decisions on November 30, 2023, significantly reshaping India’s defence procurement landscape. An unprecedented approval was granted to various Capital Acquisition Proposals amounting to Rs 2.23 lakh crore, with an overwhelming 98% of this amount (Rs 2.20 lakh crore) dedicated to sourcing from domestic industries. This move propels India’s Defence Industry further towards achieving the coveted goal of ‘Aatmanirbharta’ or self-reliance.
Among the crucial decisions taken, the DAC sanctioned the procurement of two types of Anti-tank Munitions, Area Denial Munition (ADM) Type – 2 and Type-3. These munitions are designed to neutralise Tanks, Armoured personnel carriers, and enemy personnel. Additionally, to replace the Indian Field Gun (IFG), which has reached the end of its service life, approval was granted for the procurement of a state-of-the-art Towed Gun System (TGS). This system is slated to become a cornerstone of the Indian Army’s Artillery forces. Furthermore, the DAC endorsed the acquisition of 155 mm Nubless projectiles intended for use in 155 mm Artillery guns, a move aimed at enhancing both the lethality and safety of these projectiles. All these acquisitions for the Indian Army fall under the Buy (Indian-IDDM) category, emphasizing indigenous production.
Further bolstering the combat capabilities, the DAC greenlit the procurement and integration of Automatic Target Tracker (ATT) and Digital Basaltic Computer (DBC) for T-90 Tanks under the Buy (India) category. These additions will maintain the combat edge of T-90 tanks over adversary platforms. Additionally, the DAC approved the procurement of Medium Range Anti-Ship Missiles (MRAShM) for the surface platform of the Indian Navy under the Buy (Indian-IDDM) category. Envisioned as lightweight Surface-to-Surface Missiles, these will serve as the primary offensive weapons on Indian Naval Ships.
Moreover, the DAC’s nod for the procurement of Light Combat Helicopters (LCH) for the Indian Air Force (IAF) & Indian Army and Light Combat Aircraft (LCA) Mk 1A for the IAF from Hindustan Aeronautics Limited (HAL) under the Buy (Indian-IDDM) category signifies a significant stride in reinforcing the IAF’s strength. Upgradation of Su-30 MKI Aircraft indigenously from HAL also received approval, further amplifying indigenous capabilities while diminishing reliance on foreign Original Equipment Manufacturers (OEMs).
In a move to boost indigenization, the DAC approved a major amendment in the Defence Acquisition Procedure (DAP) 2020. Henceforth, in all procurement categories, a minimum of 50% indigenous content, including material, components, and software manufactured in India, will be mandatory. Exclusions from this calculation include costs related to Annual Maintenance Contract (AMC)/Comprehensive Maintenance Contract (CMC)/After Sale Service. The DAC’s decision also aims to encourage greater participation of start-ups and MSMEs in the defence ecosystem. For procurement cases with an AoN cost up to Rs 300 crore, registered MSMEs and recognized start-ups will be considered for issuing Request for Proposal (RFP) without any financial parameters stipulation, a limit that can be relaxed up to Rs 500 crore on a case-to-case basis with DPB approval.
In conclusion, the DAC’s resolute decisions not only bolster India’s defence capabilities but also exemplify the nation’s unwavering commitment to foster indigenous defence production, leading the nation towards self-reliance and strengthening its strategic autonomy in the global arena.