Defence Ministry approves procurement of military hardware worth Rs 13,165 crore

Out of the total procurements, equipment and platforms worth Rs 11,486 crore will be sourced from domestic entities

With India’s national security environment turning more challenging with the military stand-off with China and Pakistan gaining a strategic edge with Taliban’s return to power in Afghanistan, the government moved to add impetus to its military preparedness. The Defence Acquisition Council (DAC) on Wednesday approved procurement of military hardware, including helicopters, guided munitions and rocket ammunition, worth approximately Rs 13,165 crore.

The Government approved procurement of 25 ALH Mark III choppers for the Indian Army from the Hindustan Aeronautics Limited (HAL) headquartered in Bengaluru at an approximate cost of Rs 3,850 crore.

Defence Minister Rajnath Singh chaired the meeting of the DAC, which accorded the Acceptance of Necessity (AoN) for several capital acquisition proposals for modernisation and meeting the operational needs of the Indian Army, Navy and Air Force.

The capital acquisitions approved by the DAC included 75 Medium Range Surface to Air Missiles (MRSAMs) from the Bharat Dynamics Limited based in Hyderabad.

The Ministry of Defence (MoD) stated that the acquisitions worth Rs 11,486 crore – 87 per cent of the total cost of the of the proposed procurement approved by the DAC – would come from domestic sources, in keeping with the “continued thrust” on implementing the “Atmanirbhar Bharat” vision of Prime Minister Narendra Modi and the “Make in India” programme of the government.

The 25 ALH Mark III helicopters the DAC cleared for procurement from the HAL under the “Buy Indian-IDDM (Indigenously Designed, Developed and Manufactured)” programme will meet the Indian Army’s need to raise a squadron of the Advanced Light Helicopters to improve its integral lift capability and to enhance its operational preparedness to respond to aggressive moves by China and Pakistan.

The DAC also approved procurement of Terminally Guided Munition and HEPF/RHE Rocket Ammunition under Buy Indian-IDDM category at an approximate cost of Rs 4,962 crore from domestic sources. Other proposals worth Rs 4,353 cr were also accorded Approval of Necessity by the DAC on Wednesday.

The council also approved a few amendments to the Defence Acquisition Policy 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 reduce timelines, according to a press-release issued by the Ministry of Defence.

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