In a major boost to Indian defence industry, the Government on Thursday approved mega deals worth `2.23 lakh crore for acquiring more Tejas light combat aircraft, light combat helicopters, upgradation of SU-30 fighter jets, anti-ship missiles and towed gun systems.
These approvals by the Defence Acquisition Council (DAC) chaired by Defence Minister Rajnath Singh here will also ensure availability of modern weapon systems for operational readiness. The DAC is the apex body for clearing procurement proposals put up by the Armed forces. The Cabinet Committee on Security (CCS) gives the final clearance.
Prime Minister Narendra Modi tweeted, “Excellent move towards bolstering our Armed Forces’ operational prowess. The commitment to ‘Make in India’ in this decision marks a crucial stride in our pursuit of self-sufficiency in the Defence sector.”
Giving details of the DAC decisions, the Defence Ministry officials said the apex body accorded approval in respect of Acceptance of Necessity (AoNs) for various capital acquisition proposals amounting to `2.23 lakh crore.
Officials said out of the total amount, acquisition worth `2.20 lakh crore (98 per cent of total AoN amount) will be sourced from domestic industries. This will give a substantial boost to the Indian Defence Industry towards the aim of achieving the goal of “Aatmanirbharta”.
One of the major proposals given the nod include an order for acquisition of 97 Tejas jets and 156 Prachand light combat helicopters (90 for Army and 66 for IAF).
The Hindustan Aeronautics Limited (HAL) will manufacture these platforms for the IAF.
While the Tejas deal is worth over `55,000 crore, the helicopter deal is about `45,000 crore. These two deals are under Buy (Indian-IDDM) category. 156 Prachand helicopters (90 for Army and 66 for IAF).
In February 2021, the Defence Ministry sealed a `48,000 crore deal with the HAL for procurement of 83 Tejas MK-1A jets for the IAF. With the additional fleet, the number of indigenously-developed Tejas aircraft being procured by the IAF would go up to 180.
A major upgrade of the Sukhoi Su-30 MKI was also cleared by the DAC.
The IAF has over 260 Su-30 aircraft and the upgrade is expected to be an indigenous one, with India-developed radars, avionics and subsystems. Around 84 aircraft are expected to be upgraded initially. The AoNs have also been accorded by the DAC for upgradation of Su-30 MKI Aircraft indigenously from HAL. While procurement of these equipment will provide enormous strength to the IAF, acquisition from domestic Defence industries will take the indigenous capability to a new height. It will also reduce dependability on Foreign Original Equipment Manufacturers (OEMs) substantially, officials said.
The DAC also accorded approval for procurement of two types of Anti-tank Munitions namely, Area Denial Munition (ADM) Type- 2 and Type-3, which are capable of neutralising Tanks and Armoured personnel carriers and enemy personnel.
Continued on Page 2
Make in India
bolsters Defence
To replace the Indian Field Gun (IFG), which has completed its service life, AoN for procurement of state-of-the-art Towed Gun System (TGS) has been granted which will become a mainstay of Artillery forces of Indian Army.
The AoN was also accorded for 155 mm Nubless projectile for use in 155 mm Artillery guns which will enhance lethality and safety of the projectiles. All these equipment of the Indian Army will be procured under Buy (Indian-IDDM) category.
The AoN for procurement and integration of Automatic Target Tracker (ATT) and Digital Basaltic Computer (DBC) for T-90 Tanks under Buy (India) category have also been accorded which will help in maintaining combative edge of T-90 tanks over adversary platforms. The AoN for procurement of Medium Range Anti-Ship Missiles (MRAShM) for surface platform of Indian Navy under Buy (Indian-IDDM) category has also been accorded. The MRAShM is envisaged as a lightweight Surface-to-Surface Missile which will be a primary offensive weapon onboard Indian Naval Ships.
Further to maximise indigenisation, the DAC gave the go-ahead for a major amendment in the Defence Acquisition Procedure (DAP) 2020. It has been decided that henceforth, in all categories of procurement cases, minimum 50 per cent of indigenous content shall be in the form of material, components and software that are manufactured in India.
For the purpose of calculation of Indigenous content, cost of Annual Maintenance Contract (AMC)/Comprehensive Maintenance Contract (CMC)/After Sale Service shall be excluded.
Also, the DAC has taken decision to further encourage start-ups/MSMEs participation in the defence ecosystem.
For all procurement cases with AoN cost up to `300 crore, registered MSMEs and recognised start-ups will be considered for issue of Request for Proposal (RFP) without any stipulation of financial parameters, which can further be relaxed with approval of Defence Procurement Board (DPB) for AoN cost upto `500 crore on case-to-case basis.