Centre approves defence acquisition projects worth Rs 2.23 lakh crore

New Delhi: The Defence Ministry on Thursday approved the purchase of 156 Prachand Light Combat Helicopters for the Indian Army and Indian Air Force as well as 97 additional Tejas Light Combat Aircraft for the IAF from Hindustan Aeronautics Limited, adding more teeth to the two services.

In addition, approval has been given to upgrade 84 Su-30MKI fighter jets that are currently the mainstay of the IAF.

The initial clearances have been sanctioned by the Defence Acquisition Council, headed by Defence Minister Rajnath Singh. The final approval will come from the Cabinet Committee on Security, headed by the Prime Minister, once the negotiations with the manufacturer are complete and a delivery timeline has been mutually agreed upon.

Taken together, the DAC cleared proposals worth Rs 2.23 lakh crore, of which items worth Rs 2.20 lakh crore – nearly 98 per cent - will be sourced from Indian industries, giving them a major boost.

For the Bangalore-based aviation major, the DAC approval would mean a step closer to getting contracts worth nearly Rs 1.6 lakh crore – Rs 65,000 crore for LCA Mk-1, Rs 55,000 crore for the LCH and Rs 40,000 crore for Su-30 upgrades, sources said. However, the final value of the deal will be determined in the subsequent negotiations between the HAL and IAF.

Sources said 90 LCH would be for the Army while the IAF would fly the remaining 66. Earlier a contract was signed to buy 15 LCH Prachand and 12 of them have been delivered so far.

In the last 15 months, the two services inducted the gunships and flew them extensively in extreme weather conditions and terrains ranging from deserts in the western theatre to the cold and rarefied atmosphere in the north.

The long-awaited approval for 97 more LCA comes at a time when the IAF is on its last leg to phase out the six-decade-old MiG-21s. The delivery of these 97 home-grown combat jets, however, will start only after HAL completes the previous contract of delivering 83 similar aircraft. The first LCA Mk-1 is scheduled to be delivered by February 2024.

HAL has the capacity to build eight LCA aircraft per year. This is being increased to 16 aircraft every year by 2025 and further to 24 aircraft in the next three years.

The lightweight, all-weather multi-role combat aircraft. Tejas has been operationally deployed with the IAF, which aims to make it the mainstay of the fighter fleet in future. The aircraft is capable of undertaking offensive air support roles as well as ground attach roles and is superior to its contemporaries.

Other DAC approvals include procurement of medium-range anti-ship missiles for naval warships and acquisition of towed gun systems for the Indian Army to replace the ageing Indian field guns. A few other arms and ammunition projects for the army were also given a go-ahead.