5-Aug-2022: Procurement of Defence Equipment

Proposals for capital acquisition are progressed through a detailed process that commences with Ten years Integrated Capability Development Plan (ICDP), Five Years Defence Capability Acquisition Plan (DCAP) and two year roll over Annual Acquisition Plan (AAP). Approved plans are followed by Acceptance of Necessity (AoN) accorded by Services Procurement Board (SPB) chaired by CISC for cases upto Rs. 300 crore, Defence Procurement Board (DPB) chaired by Defence Secretary for cases having value more than Rs. 300 crore and upto Rs. 500 crore and Defence Acquisition Council (DAC) chaired by Raksha Mantri for cases beyond Rs. 500 crore. Post accord of AoN, tendering and contracting is undertaken by the Services/Ministry of Defence as per the delegated financial powers. In the period 2020-21 to 2022-23 (till 30th June, 2022), 59 AoNs amounting to Rs. 1,83,778.34 crore. have been accorded and 91 Contracts amounting to Rs. 1,19,045.3 crore have been concluded.

Capital acquisition of defence equipment is carried out as per provisions of Defence Acquisition Procedure (DAP). DAP-2020 lays down the timelines for completion of acquisition activities. Further, the activities are regularly monitored so as to ensure finalization of proposals and conclusion of contracts expeditiously.

26-Jul-2022: Defence Acquisition Council, headed by Raksha Mantri Shri Rajnath Singh, approves arms procurement proposals worth Rs 28,732 crore

The Defence Acquisition Council (DAC) meeting under the chairmanship of Raksha Mantri Shri Rajnath Singh, was held on July 26, 2022. Acceptance of Necessity (AoN) for Capital Acquisition Proposals of the Armed Forces amounting to Rs 28,732 crore were accorded by the DAC in this meeting under Buy (Indian IDDM) and Buy (Indian) categories giving a further boost to ‘Aatmanirbharta’ in Defence.

Among the proposals approved by DAC in the meeting are three proposals of the Indian Army, viz. Guided Extended Range Rocket Ammunition, Area Denial Munition Type I and Infantry Combat Vehicle – Command have been designed and developed by DRDO. The total value of these three proposals is Rs 8,599 crore. Guided Extended Range Rocket Ammunition has the range of 75 kms with accuracy of 40 meters. The Aerial Denial Munition Type I Rocket Ammunition contains dual purpose sub munitions capable of neutralizing both tanks and armoured personnel carriers as well as B vehicle entrenched troops. The Infantry Combat Vehicle – Command is equipped with technology to collect, disseminate, share and present real time information to commanders to facilitate quick decision making for execution of tasks.  

Considering the demand of enhanced protection against the threat of enemy snipers to our troops deployed along the Line of Control and in close combat operations in counter terrorism scenario, DAC accorded AoN for Bullet Proof Jackets with Indian Standard BIS VI level of protection. To combat the current complex paradigm of conventional and hybrid warfare and counter terrorism at the borders, AoN for induction of approx. four lakh of Close Quarter Battle Carbines for the Services has also been accorded by the DAC. This is set to provide major impetus to the small arms manufacturing industry in India and enhancing ‘Aatmanirbharta’ in small arms.

 In the recent conflicts across the world, drone technology proved to be a force multiplier in military operations. Accordingly, to augment Indian Army’s capability in modern warfare, AoN for procurement of Autonomous Surveillance and Armed Drone Swarms has been accorded by the DAC under Buy (Indian-IDDM) category.

The DAC also approved Navy’s proposal to procure upgraded 1250KW capacity Marine Gas Turbine Generator for power generation application onboard Kolkata class of ships through Indian Industry. This will give a major boost to indigenous manufacturing of gas turbine generators.

In order to enhance the security in the coastal region of the country, the DAC also approved the proposal of procurement of 14 Fast Patrol Vessels (FPVs) for Indian Coast Guard under the Buy (Indian-IDDM) with 60% IC.

6-Jun-2022: Defence Acquisition Council, headed by Raksha Mantri Shri Rajnath Singh, clears proposals worth Rs 76,390 crore, in major boost to ‘Aatmanirbhar Bharat’

Following Prime Minister Shri Narendra Modi’s clarion call for ‘Aatmanirbharta’, Defence Acquisition Council (DAC), in a meeting chaired by Raksha Mantri Shri Rajnath Singh on June 06, 2022, accorded Acceptance of Necessity (AoN) for Capital Acquisition Proposals of the Armed Forces amounting to Rs 76,390 crore under ‘Buy (Indian)’, ‘Buy & Make (Indian)’ and ‘Buy (Indian-IDDM)’ categories. This will provide substantial boost to the Indian Defence Industry and reduce foreign spending significantly.

For the Indian Army, the DAC accorded fresh AoNs for procurement of Rough Terrain Fork Lift Trucks (RTFLTs), Bridge Laying Tanks (BLTs), Wheeled Armoured Fighting Vehicles (Wh AFVs) with Anti-Tank Guided Missiles (ATGMs) and Weapon Locating Radars (WLRs) through domestic sources with emphasis on indigenous design and development.

For the Indian Navy, the DAC accorded AoN for procurement of Next Generation Corvettes (NGC) at an estimated cost of approx. Rs 36,000 crore. These NGCs will be versatile platforms for variety of roles viz. surveillance missions, escort operations, deterrence, Surface Action Group (SAG) operations, Search & Attack and Coastal Defence. These NGCs would be constructed based on new in-house design of Indian Navy using latest technology of ship building and would contribute to further the Government’s initiative of SAGAR (Security and Growth for all in the Region).

The DAC accorded AoNs for manufacture of Dornier Aircrafts and Su-30 MKI aero-engines by the Navratna CPSE M/s Hindustan Aeronautics Limited with focus on enhancing indigenisation particularly in indigenising aero-engine material.

In pursuance of the Government’s vision for digital transformation in Defence, ‘Digital Coast Guard’ project under ‘Buy (Indian) Category has been approved by the DAC. Under this project, a pan India secure network for digitising of various surface and aviation operations, logistics, finance and HR processes in Coast Guard will be established.

22-Mar-2022: Defence Acquisition Council clears procurement of 14 items worth over Rs 380 crore from iDEX startups/MSMEs for Armed Forces

In a path-breaking initiative, Defence Acquisition Council (DAC), chaired by Raksha Mantri Shri Rajnath Singh, on March 22, 2022, cleared the procurement of 14 items worth Rs 380.43 crore from the Innovations for Defence Excellence (iDEX) startups/MSMEs. These items will be procured by the Indian Army, Navy and Air Force.

The DAC also approved the new simplified procedure for procurement from iDEX startups/MSMEs. This would fast-track the procurement from the startups/MSMEs. The procurement cycle from the AON to contract signing will be around 22 weeks as per the new procedure. Suitable incorporation will be made in the Defence Acquisition Procedure 2022. The DAC also approved the simplified procedure for Make-II category projects on similar lines of iDEX procedure and would considerably bring down the time taken from prototype development to Contract signing in Make-II projects.

The iDEX, a game changer in the Defence eco-system, was launched by Prime Minister Shri Narendra Modi in 2018 with the objective of fostering innovation and incorporating cutting-edge and disruptive technologies in the Armed Forces in a quick time-frame. The iDEX scheme, since its initiative in 2018, has now gathered momentum, and it is expected that around 25-40 items after the successful prototyping by the iDEX startups/MSMEs, will be ready for procurement by this year end.

The iDEX scheme has been instituted under the over-arching mission of the MoD to achieve self-reliance and indigenisation. The iDEX is catalysing the vibrant energy of our startup eco-system and is today steering trans-disciplinary innovations/projects. An enterprising network of experts from the Services, DPSUs, Industry, Academia, iDEX officials and the startups/MSMEs are involved in the process of co-creation and co-innovation. The aim is to provide at least 50 world class solutions to the Armed Forces and the defence industry in the near future.

The five editions of DISC and the various Open Challenges have been a huge success and have witnessed tremendous interest and participation from the startups/MSMEs. The iDEX is scaling up at a breakneck pace to support more and more innovators and startups. The iDEX startups/MSMEs are now entering the next phase, i.e., productionisation and commercialisation. This will indeed lead to the broad-basing of the defence industrial base.

22-Mar-2022: Defence Acquisition Council accords Acceptance of Necessity for capital acquisition proposals of Armed Forces amounting to Rs 8,357 crore

The Defence Acquisition Council (DAC), in its meeting of 22nd March 2022 held under the Chairmanship of Raksha Mantri Shri Rajnath Singh, accorded Acceptance of Necessity (AoN) for Capital Acquisition proposals of Armed Forces amounting to Rs 8,357 crore. As an impetus to ‘Aatmanirbhar Bharat’, all of these proposals have been approved under ‘Buy (Indian IDDM)’ category with focus on indigenous design & development and manufacturing in India.

AoNs accorded by DAC include procurement of Night Sight (Image Intensifier), Light Vehicles GS 4X4, Air Defence Fire Control Radar (Light) and GSAT 7B Satellite. Acquisition of these equipment and systems will enhance operational preparedness of Armed Forces by providing better visibility, enhanced mobility, improved communication and increased capability of detecting enemy aircraft.

In a path-breaking initiative to encourage innovation, the DAC also accorded consolidated AoN for procurements amounting to Rs 380.43 crore from the iDEX startups and MSMEs.

To accelerate the pace of indigenisation, achieve self-reliance in defence and to facilitate Ease of Doing Business for defence industry, DAC approved effecting the following policy initiatives in the DAP-2020:

• All modernisation requirements of defence forces to be indigenously sourced and import to be resorted to only as exception.
• To reduce financial burden on defence industry, requirement of IPBG is to be dispensed with and Earnest Money Deposit (EMD) to be introduced as bid security and PCIP cover upto contract stage. EMD will be applicable only for proposals of Rs 100 Cr and above and MSMEs & Startups will be exempted from EMD.
• Vendors whose products are successfully trial evaluated will be provided a certificate to that effect.
• iDEX and Make II procedures have been simplified thereby compressing timelines and ensuring early placement of contracts on successful iDEX and Make II vendors.

23-Nov-2021: Defence Acquisition Council headed by Raksha Mantri Shri Rajnath Singh approves proposal of value Rs. 2,236 Cr.

The Defence Acquisition Council (DAC) in its meeting of 23 November 2021 held under the Chairmanship of Raksha Mantri Shri Rajnath Singh accorded Acceptance of Necessity (AoN) for one Capital Acquisition proposal of Indian Air Force for its modernization and operational needs amounting to Rs. 2,236 Cr. under the category of ‘Make in India’. The procurement proposal of Air Force was for GSAT-7C Satellite and Ground Hubs for real-time connectivity of Software Defined Radios (SDRs). The project envisages complete design, development and launching of satellite in India.

Induction of GSAT-7C Satellite and Ground Hubs for Software Defined Radios (SDRs) will enhance the ability of our Armed Forces to communicate beyond Line of Sight (LoS) among one another in all circumstances in a secure mode.

29-Sep-2021: Defence Acquisition Council headed by Raksha Mantri approves proposals of value Rs.13,165 cr.

The Defence Acquisition Council (DAC) in its meeting of 29 September 2021 held under the Chairmanship of Raksha Mantri Shri Rajnath Singh accorded Acceptance of Necessity (AoN) for Capital Acquisitions proposals for modernization 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.

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 M/s 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 ofRs.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.

4-Jun-2021: Defence Acquisition Council, headed by Raksha Mantri Shri Rajnath Singh, approves RFP for construction of six submarines at approx. cost of Rs 43,000 crore

The Defence Acquisition Council (DAC), in its meeting held under the Chairmanship of Raksha Mantri Shri Rajnath Singh on June 04, 2021, has approved proposals concerning Capital Acquisitions of various equipment for modernisation and operational needs of the Armed Forces amounting to approx. Rs 6,000 crore.

In addition, the DAC also approved issue of RFP for construction of six Conventional Submarines under Project P 75 (I) under the Strategic Partnership (SP) Model. This project envisages indigenous construction of six conventional submarines equipped with the state-of-the-art Air Independent Propulsion system at an estimated cost of Rs 43,000 crore.

This is a landmark approval, being the first case processed under the Strategic Partnership model. This would be one of the largest ‘Make in India’ projects and will serve to facilitate faster and more significant absorption of technology and create a tiered industrial ecosystem for submarine construction in India. From a strategic perspective, this will help reduce current dependence on imports and gradually ensure greater self-reliance and dependability of supplies from indigenous sources.

With accord of this approval, the country will be enabled to achieve its 30-year Submarine construction programme envisioned by the Government to acquire national competence in submarine construction and for the Indian industry to independently design and construct submarines in India. The availability of new technologies and advanced manufacturing capabilities to the Industry will be an important step towards enhancing the nation’s quest for self-reliance in modern conventional submarine construction and sustainment activities whilst creating direct and indirect job opportunities in India.

This project under SP Model provides a unique long-term opportunity and planning certainty for the industry to invest and support submarine construction. It will also infuse the latest technology and weaponry for submarines in India through strategic tie up between Indian Industry and leading foreign OEMs.

There was a long pending need of the Indian Army for modernisation of its Air Defence guns. These had been earlier procured only from foreign sources. With the continued thrust of Ministry of Defence towards ‘AtmaNirbhar Bharat’ and ‘Make in India’, an enthusiastic response from about a dozen Indian companies was received. All of them have expressed their willingness and commitment to manufacture this complex gun system and associated equipment by ensuring technology assimilation in India. Accordingly, the DAC accorded approval of procurement of Air Defence Guns and Ammunition at an approx. cost of Rs 6,000 crore under the Buy & Make (Indian) category.

Further to better equip the Armed Forces to meet the operational challenges and facilitate faster induction of required arms and ammunition, the DAC extended the timelines for progressing urgent Capital Acquisitions under the delegated powers to the Armed Forces up to August 31, 2021.  This will enable the Armed Forces to complete their emergent and critical acquisitions. 

23-Feb-2021: DAC approves proposals worth Rs 13,700 crore

Defence Acquisition Council (DAC), under the chairmanship of Raksha Mantri Shri Rajnath Singh, has approved capital acquisition proposals of various weapons/platforms/equipment/

systems required by the Indian Army, Indian Navy and Indian Air Force, in New Delhi on February 23, 2021. Three Acceptance of Necessities (AoNs) for an overall cost of Rs 13,700 crore were accorded. All these AoNs are in the highest priority category of Defence Acquisition viz 'Buy [Indian-IDDM (Indigenously Designed, Developed and Manufactured)].

All these acquisition proposals will be indigenously designed, developed and manufactured. These will include inter-alia platforms and systems designed and developed by Defence Research and Development Organisation (DRDO).

To meet the Atmanirbhar Bharat goals of the Government on time-bound defence procurement process and faster decision making and to systematically work towards reducing the time taken for capital acquisition, the DAC also approved that all capital acquisition contracts (delegated and non-delegated) other than D&D cases shall be concluded in two years. The Ministry, in consultation with the Services and all stakeholders, will come up with detailed plan of action for achieving the same.

2-Jul-2020: DAC approves capital acquisition of various platforms & equipment worth Rs 38,900 crore

In the current situation and the need to strengthen the Armed Forces for the defence of our borders and in line with Prime Minister Shri Narendra Modi’s clarion call for ‘Aatmanirbhar Bharat’, Defence Acquisition Council (DAC) in its meeting of today held under the chairmanship of Raksha Mantri Shri Rajnath Singh accorded approval for capital acquisition of various platforms and equipment required by the Indian Armed Forces. Proposals for an approximate cost of Rs 38,900 crore were approved.

Focused on indigenous design and development these approvals include acquisitions from Indian industry of Rs 31,130 crore. The equipment are going to be manufactured in India involving Indian defence industry with participation of several MSMEs as prime tier vendors. The indigenous content in some of these projects is up to 80 per cent of the project cost. A large number of these projects have been made possible due to Transfer of Technology (ToT) by Defence Research and Development Organisation (DRDO) to the indigenous industry. These include Pinaka ammunitions, BMP armament upgrades and software defined radios for the Indian Army, Long Range Land Attack Cruise Missile Systems and Astra Missiles for the Indian Navy and Indian Air Force (IAF). The cost of these design and development proposals is in the range of Rs 20,400 crore.

Acquisition of new/additional missile systems will add to the fire power of three Services. While acquisition of Pinaka missile systems will enable raising additional regiments over and above the ones already inducted, addition of Long Range Land Attack Missile Systems having a firing range of 1,000 kilometres to the existing arsenal will bolster the attack capabilities of the Navy and the Air Force. Similarly induction of Astra Missiles having Beyond Visual Range capability will serve as a force multiplier and immensely add to the strike capability of the Navy and Air Force.

Further, addressing the long felt need of the IAF to increase its fighter squadrons, the DAC also approved the proposal for procurement of 21 MIG-29 along with upgradation of existing 59 MIG-29 aircraft and procurement of 12 Su-30 MKI aircraft. While the MIG 29 procurement and upgradation from Russia is estimated to cost Rs 7,418 crore, the Su-30 MKI will be procured from Hindustan Aeronautics Limited (HAL) at an estimated cost of Rs 10,730 crore.

27-Oct-2018: DAC Approves State of the Art Technological Upgrade of 17 Dorniers of ICG Worth Rs 950 Crore

The Defence Acquisition Council (DAC), chaired by Raksha Mantri Smt. Nirmala Sitharaman has accorded approval for the Mid Life Upgrade of 17 Dornier Aircraft of Indian Coast Guard (ICG) at an approximate cost of Rs. 950 crore. The upgrades will be carried out by M/s Hindustan Aeronautics Limited (HAL), the aircraft manufacturer of India.

ICG is responsible for protecting the national interests in maritime zones of India which entails surveillance of sea areas of approximately 2.01 million square kilometres of India’s Exclusive Economic Zone (EEZ). ICG is also the nodal agency in India for maritime pollution response. The Coast Guard has a fleet of Dornier aircraft which play a pivotal role in maritime surveillance. In order to enhance the capabilities of the fleet, DAC accorded approval for upgradation of these aircraft with state-of-the-art technology, spares, Special Maintenance Tools (SMT) and Special Test Equipment (STE). The DAC also approved equipping of three aircraft with Pollution Surveillance Systems.

18-Sep-2018: DAC Approves Procurement of Equipment Worth Rs 9,100 Crores

The Defence Acquisition Council (DAC) accorded approval for the procurement of equipment for the Defence Forces valued at over Rs 9,100 crores.

Pursuing the goal of indigenisation and self-reliance, the DAC approved procurement of two Regiments of Akash Missile Systems under 'Buy (Indian)' category from M/s BDL. The Missile to be procured is an upgraded version of the previously inducted Akash missiles and will include seeker technology, possess 360 degree coverage and will be of compact configuration with reduced signature. The upgraded Akash Weapon System is operationally critical equipment which will provide protection to vital assets.

The DAC also accorded approval for progressing Design and Development of Individual Under Water Breathing Apparatus (IUWBA) for T 90 Tanks. Developed by DRDO Lab DEBEL, the IUWBA is used by the crew of Tanks as a safety gear and is required by the Tank crew for emergency escape when negotiating water obstacles while deep fording. The DAC also accorded approval for Design and Development of Test Equipment for Guided Weapons System of T 90 Tank. The equipment is being developed by DRDO and will give an indigenous solution to the Test Equipment used for checking the Guided Weapon System of Tank T 90. The equipment earlier procured from foreign OEMs, has been developed indigenously and is in pursuit of the Government’s 'Make in India' initiative.

25-Aug-2018: DAC Approves Procurement for Services amounting to Nearly Rs. 46,000 Crores

The Defence Acquisition Council (DAC), chaired by Hon’ble Defence Minister Smt. Nirmala Sitharaman, met on 25 Aug 2018 and accorded approval for procurement for the Services amounting to approximately Rs. 46,000 crores.

The Defence Acquisition Council (DAC), in a landmark decision today, approved procurement of 111 Utility Helicopters for the Indian Navy at a cost of over Rs. 21,000 crores. This is the first project under the MoD’s prestigious Strategic Partnership (SP) Model that aims at providing significant fillip to the Government’s ‘Make in India’ programme. SP Model envisages indigenous manufacturing of major defence platforms by an Indian Strategic Partner, who will collaborate with foreign OEM, acquire niche technologies and set up production facilities in the Country. The model has a long-term vision of promoting India as a manufacturing hub for defence equipment thus enhancing self-sufficiency and establishing an industrial and R&D ecosystem, capable of meeting the future requirements of the Armed Forces. The contract when finalised, would result in a vibrant and wide-spread Defence industrial eco-system in the Indian Aviation Sector with the Private Industry and MSMEs as major stakeholders.

In further quest for modernisation of the Armed forces the DAC also granted approval to a few other proposals amounting to approximately Rs. 24,879.16 crores, which included approval for procurement of 150 numbers of Indigenously Designed and Developed 155 mm Advanced Towed Artillery Gun Systems for the Indian Army at an approximate cost of Rs 3,364.78 crores. These guns have been indigenously designed & developed by DRDO and will be manufactured by production agencies, as nominated by DRDO. They are likely to be the mainstay of Artillery in the near future. A nod to these major schemes will provide a fillip to the ‘Make in India’ push by the Government, will help create self-reliance in the Country in Defence manufacturing sector and has the potential of making the Defence Industry as a major engine of India’s economic growth.

To enhance the capability of Navy at sea, approval has also been granted for procurement of Anti-Submarine capable, 24 in number Multi Role Helicopters, which are an integral part of the frontline warships like the Aircraft Carriers, destroyers, frigates and corvettes. Availability of MRH with the Navy would plug the existing capability gap.

In addition, procurement of 14 Vertically Launched Short Range Missile Systems was also cleared by the DAC. Of these, 10 systems will be indigenously developed. These systems will boost the self-defence capability of ships against Anti-Ship Missiles.

7-Jun-2018: DAC approves Equipment Acquisition proposals for Defence forces worth over Rs 5500 Crore

The Defence Acquisition Council (DAC) accorded approval for the procurement of equipment for the Defence Forces valued at over Rs 5500 crore.

Pursuing the goal of indigenisation and self-reliance in the field of Defence Procurements, the DAC approved procurement of 12 High Power Radars for the Indian Air Force under ‘Buy (Indian) IDDM’ category. The radars will provide long range medium and high altitude radar cover with the capability to detect and track high speed targets following parabolic trajectories. Technologically superior, the radars will have the capability to scan 360o without mechanical rotation of Antenna and will operate on 24 x 7 basis with minimal maintenance requirement. Their procurement will enhance the overall efficacy of the Air Defence network in the country.

The DAC also accorded approval for procurement of Air Cushion Vehicles (ACVs) for the Indian Coast Guard and Indian Army from Indian Shipyard. These vessels would offer great advantage over conventional boats/crafts with their ability to travel at very high speeds over shallow water, sand banks, mud flats and swamps which are non-navigable by boats/small crafts due to draught restrictions/uncharted depths. These craft offer capability enhancement for the Services, and would prove useful for amphibious/ riverine operations, especially where there is a requirement to move men and material from one island to another island, across riverine terrain, creeks etc.

27-Apr-2018: DAC Approves Capital Acquisition Proposals Worth Rs 3,687 Crore

The Defence Acquisition Council (DAC), chaired by the Raksha Mantri Smt. Nirmala Sitharaman, met today and accorded approval to Capital Acquisition Proposals of the Services valued at over Rs 3,687 crore.

In a boost to indigenisation and in realisation of India's growing technological prowess, the DAC approved procurement of Defence Research and Development Organisation’s (DRDO’s) designed and developed NAG Missile System (NAMIS) at the cost of Rs 524 crore. The system includes a third generation Anti-Tank Guided Missile, the NAG, along with the Missile Carrier Vehicle (NAMICA). The NAG missile is a third generation anti-tank guided missile, which has top attack capabilities that can effectively engage and destroy all known enemy tanks during day and night. This will give a quantum boost to the Army's capability against enemy armour.

The DAC also approved procurement of thirteen 127 mm calibre guns for the Navy. These guns will be fitted on-board new construction ships for undertaking surface engagements including Naval Gunfire Support Operations. The guns will enable Naval ships to provide fire support and engagement of targets on the land. These guns have engagement range of 24 kilometres, which could be extended further by using Extended Range Gun Munitions (ERGM). These guns, a long outstanding requirement of the Navy would be procured from BAE Systems of the United States of America under the categorisation of Buy (Global) at an approximate cost of over Rs 3,000 crore.

The DAC also reviewed the progress of the DRDO programme to develop indigenous Airborne Warning and Control System (AWACS).

13-Feb-2018: DAC Clears Proposal Worth Rs 15,935 Crore

The Defence Acquisition Council (DAC) has accorded approval to Capital Acquisition Proposals of the Services valued at approximately Rs 15,935 crore.

These included procurement of essential quantity of Light Machine Guns for the three Services through the Fast Track Procedure at an estimated cost of over Rs 1,819 crore. This procurement will meet the operational requirement of the troops deployed on the borders. A concurrent proposal is being processed for the balance quantity to be procured under the 'Buy and Make (Indian)' categorisation.

The DAC also accorded approval for procurement of 7.4 lakh Assault Rifles for the three Services. These Rifles will be ‘Made in India’ under the categorisation of 'Buy and Make (Indian)', through both Ordnance Factory Board and Private Industry at an estimated cost of Rs 12,280 crore.

In the last one month, to equip the soldiers on the border with modern and more effective equipment, the DAC has fast tracked procurement of the three main personal weapons, i.e., Rifles, Carbines and Light Machine Guns.

The DAC also approved procurement of 5,719 Sniper Rifles for the Indian Army and Indian Air Force at an estimated cost of Rs 982 crore. While these high precision weapons will be bought with ‘Buy Global’ categorisation, the ammunition for these will be initially procured and subsequently manufactured in India.

To enhance the anti-submarine warfare capabilities of Indian Naval Ships, the DAC accorded approval for the procurement of Advanced Torpedo Decoy Systems (ATDS) for the Indian Navy. The 'Mareech' system has been developed indigenously by Defence Research and Development Organisation and has successfully completed extensive trial evaluations. The 'Mareech' systems will be produced by Bharat Electronics Limited, Bengaluru at an estimated cost of Rs 850 crore.

16-Jan-2018: DAC simplifies procedure to develop defence equipment through Indian Industry

The Defence Acquisition Council (DAC) met today and simplified ‘Make II’ procedure, which prescribes guidelines to be followed to develop and manufacture defence equipment through Indian Industry. The DAC also cleared procurement of 72,400 assault rifles and 93,895 carbines on fast track basis for Rs 3,547 crore to enable the Defence Forces to meet their immediate requirement for the troops deployed on the borders.

To encourage participation of private sector in defence design and production and to give a boost to ‘Make in India’ programme, the Council today introduced significant changes in the ‘Make II’ category of the Defence Procurement Procedure. Considering that no government funding is involved in ‘Make II’ project, the DAC simplified the procedure to make it industry friendly, with minimal government control. The salient aspects of the revised procedure will now allow Ministry of Defence to accept suo-motu proposals from the industry and also allows start-ups to develop equipment for Indian Armed Forces. The minimum qualification criteria to participate in ‘Make II’ projects has also been relaxed by removing conditions related to credit rating and reducing financial net worth criteria.

As per the earlier ‘Make II’ procedure, only two vendors were shortlisted to develop prototype equipment. Now, all vendors meeting the relaxed eligibility criteria will be allowed to participate in the prototype development process. The vendor will not be required to submit Detailed Project Report. After accord of approval of the ‘Make II’ project by the council, all clearances will be accorded at Service HQ (SHQ) level.            

To hand-hold industry and start-ups, SHQs will now setup project facilitation teams to act as the primary interface between the SHQ and the industry during the design and development stage. These teams would provide technical inputs, trial infrastructure and other facilities as required by the vendor. Even if a single individual or firm offers innovative solutions, the SHQ will now have the option to accept and process the vendor’s development initiative. SHQs will be allowed to hire domain experts/consultants from private sector to increase outreach and enhance awareness among the industry.

Most importantly, there will be no foreclosure of project after the project is sanctioned, except on default by the vendor, to ensure that the successful vendor has assured orders.