DAC approves eight defence proposals worth over Rs 54,000 crore, sets rules for faster acquisition

For the Indian Army, AoN to procure 1350 HP Engine was accorded to upgrade the present 1000 HP Engine for T-90 tanks, aimed at enhancing battlefield mobility in high-altitude areas.

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26 Aug, 2025 12:21

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The Defence Acquisition Council (DAC) has accorded Acceptance of Necessity (AoNs) to eight proposals, amounting to over Rs 54,000 crore, Centre informed on March 20, as well as approved guidelines to reduce timelines of acquisition.

For the Indian Army, the DAC - chaired by Defence Minister Rajnath Singh - approved AoN to procure 1350 HP Engine to upgrade the present 1000 HP Engine for T-90 tanks, aimed at enhancing battlefield mobility in high-altitude areas. "This will enhance the battlefield mobility of these tanks especially in high-altitude area by increasing the power to weight ratio," the statement said.

For the Indian Navy, AoN for procurement of Varunastra, an indigenously ship-launched anti-submarine torpedo, was accorded, to counter submarine threats. The Varunastra torpedos are indigenously developed anti-submarine weapon, and manufactured by Bharat Dynamics (BDL). Shares of BDL were higher by close to 4% in the trading session on March 20.

For the Indian Air Force, AoN to procure Airborne Early Warning & Control (AEW&C) Aircraft Systems was accorded. These AEW&Cs are capability enhancers that can exponentially increase the combat potential of weapon systems, a statement by government said. Airborne Early Warning & Control System (AEW&C) uses advanced radars to detect and tracking aircraft or UAVs from a long range. The IAF already operates Netra AEW&C systems, which are mounted on Embraer aircraft.

The DAC also approved guidelines to reduce timeline of various stages of the Capital Acquisition Process, to make it faster and efficient. The Centre has already announced plans to step up on defence-related reforms in 2025, with focus on cyber and space domains, along with emerging technologies like Artificial Intelligence and Machine Learning.