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Published 19:07 IST, August 11th 2020

Massive boost to defence arsenal: DAC approves procurement to the tune of Rs 8,722 crores

In a major boost to India's defence arsenal, the Defence Acquisition Council (DAC), which met on Tuesday, approved the acquisition proposals worth Rs 8722.38 cr

Reported by: Jitesh Vachhatani
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Defence Acquisition Council
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In a major boost to India's defence arsenal, the Defence Acquisition Council (DAC), which met on Tuesday, approved the acquisition proposals worth approximately Rs 8,722.38 crores. Chaired by Defence Minister Rajnath Singh, the DAC approved the procurement of 106 Basic Trainer Aircraft from HAL to address the basic training requirements of the Indian Air Force (IAF). The council also gave approvals that are likely to speed up the procurement of AK 203 and Unmanned Aerial Vehicle upgrades.

"With Hindustan Aeronautics Limited (HAL) having successfully developed Basic Trainer Aircraft (HTT-40) Prototypes and certification process underway, the DAC approved procurement of 106 Basic Trainer Aircraft from HAL to address the basic training requirements of the Indian Air Force (IAF).  Post Certification 70 Basic Trainer Aircraft will be initially procured from HAL and balance 36 after operationalisation of HTT-40 fleet in IAF," the statement released by the Ministry of Defence on Tuesday read. 

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Furthermore, to propel the firepower of the Indian Navy, the DAC approved procurement of an upgraded version of Super Rapid Gun Mount (SRGM) which is fitted as the main gun on board Navy and Indian Coast Guard (ICG) warships from Bharat Heavy Electricals Limited (BHEL). The Ministry of Defence has informed that the upgraded version of SRGM has enhanced capability to perform against fast manoeuvring targets like missiles and Fast Attack Crafts and increase the maximum engagement range. 

Moreover, the DAC has also approved procurement of 125 mm APFSDS (Armour Piercing Fin Stabilized Discarding Sabot) ammunition for Indian Army as a ‘Design and Development Case’. The ammunition being procured will have a 70 per cent indigenous content. 

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MoD bans import of 101 items

The move comes after the Ministry of Defence's embargo on the import of 101 items. MoD has bifurcated the capital procurement budget for 2020-21 between domestic and foreign capital procurement routes. A separate budget head has been created with an outlay of nearly Rs 52,000 crore for domestic capital procurement in the current financial year. The embargo on imports is planned to be progressively implemented between 2020 to 2024. The proposals approved by the DAC on Tuesday are expected to strengthen the Armed Forces by relying on indigenous capability to take forward the initiative on ‘Atmanirbhar Bharat.’ 

DAC approved Rs 1300 cr procurement

Earlier in March, the DAC had accorded approval for the acquisition of indigenous Defence equipment for about Rs 1,300 crore. The proposals were for procurement of Aerial Fuses and Twin-Dome Simulators for Hawk Mk32 aircraft for the Indian Air Force. It had also given a nod to the procurement of 83 indigenous Tejas fighter aircraft for the Indian Air Force (IAF). While the orders of 40 Tejas aircraft had been placed with the Hindustan Aeronautics Limited (HAL), the DAC paved the way for procurement of 83 of the more advanced Mk1A version of the aircraft from HAL by finalising the contractual and other issues. 

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Updated 19:07 IST, August 11th 2020