Indian DAC grants approval for purchase of services worth $6.58bn

28 August 2018 (Last Updated August 28th, 2018 12:33)

The Defence Acquisition Council (DAC) of India has granted approval for the acquisition of services for a total amount of approximately Rs460bn ($6.58bn).

The Defence Acquisition Council (DAC) of India has granted approval for the acquisition of services for a total amount of approximately Rs460bn ($6.58bn).

DAC has approved more than Rs210bn ($3bn) of the total acquisition to purchase 111 units of utility helicopters for the Indian Navy.

The acquisition is the first project under the Indian Ministry of Defence’s (MoD) strategic partnership model developed to boost the Government of India’s ‘Make in India’ programme.

“Furthermore, 14 units of vertically launched short-range missile systems have also been cleared for acquisition and will help strengthen the defence capability of Indian Navy vessels.”

The model has been designed to support local production of major defence platforms by an Indian strategic partner, who will work in collaboration with foreign original equipment manufacturers, purchase advanced technologies, and build manufacturing facilities in the country.

DAC has also approved the procurement of 24 anti-submarine capable multi-role helicopters that would help improve the Indian Navy’s presence at sea.

If purchased, the new multi-role helicopters will form an integral part of the navy’s frontline battleships, which include aircraft carriers, destroyers, frigates and corvettes.

Furthermore, 14 units of vertically launched short-range missile systems have also been cleared for acquisition and will help strengthen the defence capability of Indian Navy vessels against different anti-ship missiles.

Ten of the 14 vertically launched short-range missile systems will be manufactured by local companies.

In addition, the council has granted approval for other proposals with a total value of approximately Rs248.79bn ($3.56bn), including approval for the purchase of 150 units of 155mm advanced towed artillery gun systems for the Indian Army at an approximate cost of Rs33.65bn ($481.61m).