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June 7, 2022

India’s DAC grants $9.83bn for defence procurements

The AoN of $4.63bn (Rs360bn) has been allocated for the procurement of Next Generation Corvettes (NGC) for the Indian Navy.

India’s Defence Acquisition Council (DAC), which is headed by Indian Defence Minister Rajnath Singh, has granted $9.83bn (Rs763.9bn) for the armed forces’ capital acquisition proposals.

DAC, the procurement arm of the Indian Ministry of Defence (MoD), accorded acceptance of necessity (AoN) during a meeting on 6 June.

The accord falls under the Buy Indian, Buy & Make Indian and Buy Indian Designed, Developed and Manufactured (Indian-IDDM) category.

It is further expected to provide a boost to the India’s Defence Industry and cut down the foreign spending.

The DAC has allocated AoN of $4.63bn (Rs360bn) for the procurement of Next Generation Corvettes (NGC) for the Indian Navy.

NCG will be a multi-mission platform, capable of performing a range of missions including escort operations, surveillance, coastal defence, Surface Action Group (SAG) operations, deterrence and search and attack missions.

The corvettes will be constructed in accordance with the Indian Navy’s in-house design, using the latest shipbuilding technology.

The process will also support the Government of India’s (GOI) initiative of Security and Growth for all in the Region (SAGAR).

For the Indian Army, the DAC accorded fresh AoN for procuring Bridge Laying Tanks (BLTs), Rough Terrain Forklift Trucks (RTFLTs), Anti-Tank Guided Missiles (ATGMs), Wheeled Armoured Fighting Vehicles (Wh AFVs) and Weapon Locating Radars (WLRs).

The items will be procured through domestic sources to promote indigenous design and development.

Furthermore, India’s DAC accorded AoN for the Indian Air Force (IAF) includes manufacturing of Dornier aircraft and Su-30 MKI aero-engines by Hindustan Aeronautics (HAL).

Under the $9.83bn procurement grant, DAC has also approved the Digital Coast Guard project to establish a secure network for digitising several surface and aviation operations, logistics, finance and other processes.

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