The Defence Acquisition Council (DAC) chaired by Defence Minister Manohar Parrikar on Wednesday cleared deals worth over Rs20,000 crore, including the long pending M-777 howitzers for the Army and manufacturing light transport aircraft in India exclusively by the private industry to replace the ageing Avro planes.
The DAC also cleared a deal for 200 Russian made Kamov light utility helicopters for the army and navy. While some of the helicopters will be bought off the shelf others will be manufactured here as part of Make in India policy. The price of these helicopters will be negotiated now.
The three-hour long DAC meet gave the go ahead for the Rs11, 929 crore deal to manufacture light transport aircraft. Tata in collaboration with Airbus will make 40 planes in India while the remaining 16 will be bought off the shelf.
The Rs2,900 crore deal for M-777 howitzers from US will help the Army to fight wars in mountains as these guns can be airlifted in helicopters. India will buy these guns through Foreign Military Sale route from the US.
The Navy also got the nod to buy six Brahmos for six frontline warships and the deal is worth over Rs2,700 crore. Brahmos supersonic cruise missile is capable of hitting a target at a range of 290 km and is jointly produced by India and Russia.
The Government also okayed a proposal to build the second aircraft carrier in India. The first carrier INS Vikrant is now under construction in Cochin and is expected to join service in 208.
The DAC also gave the approval for setting up a committee for price negotiations for the 36-Rafale fighter jet deal announced by Prime Minister Narendra Modi in April.