India’s Defence Acquisition Council green lights $26.8 billion in spending
India’s Defence Acquisition Council (DAC) has approved INR2.3 trillion (US$26.8 billion) to purchase light combat helicopters (LCH), munitions and towed gun for the Indian Army, as well as LCHs and Tejas Mk1A light combat aircraft for the air force and medium range anti-ship missiles (MRAShM) for Indian Navy (IN) ships.
Described as Acceptance of Necessity (AoNs) for various Capital Acquisition Proposals the council released the list on 30 November with a focus on aatmanirbharta or self-reliance focusing on a commitment to substantial local industry involvement, specifically that 98% of contract must be domestically spent.
The DAC has accorded the AoN for procurement of two types of anti-tank munitions specifically area denial munition (ADM) with a focus on defeating MBTs and APCs, as well as personnel. Alongside the approval, DAC gave the go ahead for the replacement of the Indian field gun with a new towed gun system.
Additionally, the army’s T-90 MBTs will receive an automatic target tracker and new computer system as part of a drive to increase the platform’s lethality.
The MRAShM has been envisaged as a lightweight surface-to-surface missile which will be a primary offensive weapon onboard IN ships.
In an effort to further push local manufacturing, the DAC noted that in all categories of procurement cases, a minimum 50% of indigenous content should be in the form of material, components and software manufactured in India.
Additionally, for all procurement cases with AoN cost up to INR3 billion ($36 million), registered micro, small and medium enterprises and recognised start-ups will be considered for issue of Request for Proposal without any stipulation of financial parameters.
This might further be relaxed with approval of Defence Procurement Board (DPB) for AoN costs up to RAN5billion ($59.9 million) on a case-to-case basis.
More from Defence Notes
-
US lawmakers warn that “more military spending is absolutely necessary” to ensure Pentagon’s readiness
The US Congress has raised concerns about how inflation rates and cuts in main acquisition programmes could affect the US military.
-
Can the US overcome Russian and Chinese nuclear capabilities?
Washington’s ageing inventory and the pace Moscow and Beijing have been modernising their capabilities put in check the US Nuclear deterrence.
-
US FY2024 funding package passes as China closes military capability gap
The Pentagon has been operating under temporary funding since October 2023, which has impacted its main acquisition and development programmes, increasing the capability gap between the US and China.
-
NATO outlines future challenges as Ukrainian funding from US stalls
In 2023, defence spending increased by an unprecedented 11% across European NATO countries and Canada. Since 2014, the group has spent an additional US$600 billion on defence.
-
US Pentagon to reduce investments in main acquisition programmes over FY2025
The DoD requested nearly US$850 billion to fund operations over the next fiscal year. Despite the amount being 1% higher than the FY2024 budget request, it has not covered the 3% inflation rate, which could impact the DoD’s main programmes in the medium and long term.