DAC Clears Defence Acquisition Proposals Worth Rs 2.38 Lakh Crore

In a major push to strengthen India’s military preparedness, the Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, has granted Acceptance of Necessity (AoN) for a range of defence procurement proposals worth about Rs 2.38 lakh crore. The approvals, cleared on March 27, 2026, cover key requirements of the Indian Army, Indian Air Force and Indian Coast Guard, and are aimed at expanding surveillance, mobility, communication, artillery, air defence and strike capabilities.

For the Indian Army, the DAC approved proposals for the Air Defence Tracked System, Armoured Piercing Tank Ammunition, High Capacity Radio Relay, Dhanush Gun System and Runway Independent Aerial Surveillance System. According to the government, the Air Defence Tracked System will provide real-time air defence control and reporting capability, while the High Capacity Radio Relay is expected to ensure reliable and fail-safe communication in operational environments. The Dhanush Gun System is intended to improve artillery firepower by enabling long-range engagement across varied terrain with better accuracy and lethality. The Runway Independent Aerial Surveillance System will strengthen battlefield surveillance, while the armoured piercing tank ammunition will enhance the effectiveness of anti-tank operations.

For the Indian Air Force, approvals were granted for the procurement of Medium Transport Aircraft, the S-400 Long Range Surface-to-Air Missile System, Remotely Piloted Strike Aircraft, and the overhaul of Su-30 aero engine aggregates. The new medium transport aircraft are intended to gradually replace the ageing AN-32 and IL-76 fleets and meet the strategic, tactical and operational airlift needs of the armed forces. The S-400 system is expected to strengthen India’s ability to counter long-range aerial threats aimed at critical areas, while the remotely piloted strike aircraft will support offensive counter-air and coordinated air operations, in addition to providing stealth-based intelligence, surveillance and reconnaissance capabilities. The overhaul of Su-30 engine aggregates is aimed at extending the aircraft’s service life and meeting operational requirements of the Air Force.

For the Indian Coast Guard, the DAC approved the acquisition of Heavy Duty Air Cushion Vehicles. These platforms are expected to support a range of maritime coastal missions, including high-speed patrolling, reconnaissance, search and rescue operations, assistance to ships, and the movement of personnel, stores and logistics.

The government also highlighted that defence approvals in 2025–26 have reached record levels. So far in the current financial year, the DAC has accorded AoN for 55 proposals worth Rs 6.73 lakh crore. In addition, capital procurement contracts have been signed for 503 proposals amounting to Rs 2.28 lakh crore. According to the Defence Ministry, both the total value of AoNs granted and the capital contracts signed this year are the highest ever recorded in any financial year.

The latest approvals underline the government’s continued focus on modernising the armed forces through large-scale capital acquisition across land, air and maritime domains.

Source: PIB