India approves acquisition of defence equipment worth Rs 84,560 cr

Amendments in Defence Acquisition Procedure 2020 get the nod to promote procurement of advanced technologies from Start-Ups & MSMEs

The Defence Acquisition Council (DAC), under the chairmanship of Defence Minister Rajnath Singh, on Friday gave approval for various capital acquisition proposals worth Rs 84,560 crore to boost the capabilities of the Armed Forces and Indian Coast Guard.

DAC accorded approval for Acceptance of Necessity (AoN) with special emphasis on procurement of various equipment from ndian vendors to give further impetus to ‘Aatmanirbharta’ (self-reliance).

The proposals cleared by the DAC include new generation anti-tank mines, air defence tactical control radar, heavy weight torpedoes, medium range maritime reconnaissance and multi-mission maritime aircraft, flight refueller aircraft and software defined radios. The DAC approved procurement of medium range maritime reconnaissance and multi-mission maritime aircraft for strengthening the surveillance and interdiction capabilities of the Indian Navy and the Indian Coast Guard, the defence ministry said.

A proposal to procure air defence tactical control radar was also approved with an aim to strengthen the air defence systems, especially the capabilities to detect slow, small and low-flying targets, it said.

''In order to enhance the operational efficiency and domination in the tactical battle area for engaging targets that are beyond visual line of sight by the mechanised forces, the AoN (approval of necessity) under Buy (Indian-IDDM) category has been accorded for procurement of canister launched anti-armour loiter munition system,'' the defence ministry said.

It said the DAC accorded AoN for procurement of Flight Refueller Aircraft for enhancing the operational capabilities and reach of the Indian Air Force.

To create a friendly defence start-up ecosystem and promote procurement of Advanced technologies from start-ups and MSMEs developed under the Innovations for Defence Excellence (iDEX) and Technology Development Fund schemes, the DAC has approved amendments in the Defence Acquisition Procedure (DAP) 2020 with respect to benchmarking and cost computation, payment schedule, procurement quantity etc. "This will provide the much-needed incentive along with a supportive business environment for the start-ups and MSMEs under iDEX and TDF schemes, truly in the spirit of ‘Ease of Doing Business’," said MoD.