The project is being developed jointly by the Defence Research and Development Laboratory and the Indian Air Force. The project is being developed jointly by the Defence Research and Development Laboratory and the Indian Air Force. The project is being developed jointly by the Defence Research and Development Laboratory and the Indian Air Force. The Defence Acquisition Council (DAC) has approved contracts worth approximately Rs 84,560 crore, for enhancing India's overall defence requirements and infrastructure.
The DAC, chaired by Defence Minister Rajnath Singh, gave the green light to the proposals during its latest meeting. The council is responsible for the procurement and acquisition of weapons and equipment for the Indian military.
The approved procurements include a wide array of essentials, such as weaponry, armoured vehicles, advanced communication systems, and requisite surveillance equipment. While the specifics of the contract haven’t been made public, reports suggest that a significant portion of the procurement would cater to upgrading current infrastructure and initiating the production of cutting-edge weapons indigenously under the 'Make in India' initiative.
DAC has granted Acceptance of Necessity (AoN) under the Buy (Indian-Indigenously Designed Developed and Manufactured) category. This includes the procurement of a new generation of Anti-tank mines equipped with seismic sensors and remote deactivation capabilities, incorporating additional safety features. The aim is to bolster operational efficiency and dominance in the Tactical Battle Area, enabling engagement with targets Beyond Visual Line of Sight by the Mechanised Forces.
Additionally, AoN has been accorded for the acquisition of a Canister Launched Anti-Armour Loiter Munition System, enhancing the capability to engage targets effectively. This move is aligned with the commitment to indigenous development (IDDM) and aims to strengthen the country's defence capabilities.
Furthermore, the DAC has approved the procurement of an Air Defence Tactical Control Radar under the Buy (Indian-IDDM) category. This decision is geared towards reinforcing Air Defence Systems, particularly in detecting slow, small, and low-flying targets. The radar system will play a crucial role in surveillance, detection, and tracking of diverse targets, contributing to the overall security apparatus.
The DAC has approved the AoN for the procurement of Medium Range Maritime Reconnaissance and Multi-Mission Maritime Aircraft, falling under the Buy and Make category. This decision is aimed at enhancing the surveillance and interdiction capabilities of both the Indian Navy and the Indian Coast Guard (ICG) in the expansive maritime region.
To bolster the Indian Naval Ships' readiness against potential threats, the DAC has accorded AoN under the Buy (Indian) category for the procurement of Active Towed Array Sonar. This sonar system is designed to operate at low frequencies and various depths, enabling long-range detections of adversary submarines. Additionally, the AoN has been granted for the procurement of Heavy Weight Torpedoes, contributing to the attacking capabilities of Kalvari Class submarines.
The DAC has also given AoN for sustainment support through Follow On Support (FOS) and Repair Replenishment support through Follow On Supply Support (FOSS) for 24 MH60R aircraft under the Foreign Military Sale route with the US Government.
In the recently unveiled Interim Budget for the fiscal year 2025, the Central government allocated Rs 6.21 lakh crore for the defence sector. This marked a 4.72 per cent increase from the previous year's allocation of Rs 5.94 lakh crore. The allocation for the defence sector constituted approximately 13 per cent of the total budget presented by Union Finance Minister Nirmala Sitharaman in the Parliament on February 1.
Defence Minister Rajnath Singh has previously emphasised the government's commitment to modernising defence capabilities. In line with this focus, Modi-led government's decision to increase the defence budget significantly has indeed encouraged and expedited the process of defence acquisition and indigenisation.
Among all the ministries, the Defence Ministry retained its status as the recipient of the largest share of the budget. Notably, a significant portion, 27.67 per cent, is earmarked for capital expenditures, reflecting the commitment to enhancing the country's defence capabilities. Another 14.82 per cent is allocated for revenue expenditures, ensuring operational readiness and sustenance. Additionally, 30.68 per cent is dedicated to pay and benefits, emphasizing the welfare of the armed forces. The allocation also includes 22.72 per cent for defence pensions and 4.11 per cent for civil organizations under the Ministry of Defence.
In response to the budgetary allocation for the defence sector, shares of defence companies experienced notable gains in Friday's trading session. Bharat Electronics Ltd (BEL) witnessed a 2.18% increase, reaching Rs 190 per share on the NSE. Similarly, Bharat Dynamics shares surged by 3.98%, reaching Rs 1,730.40.