Ministry of Defence
DAC clears proposals worth Rs 2.38 lakh crore to augment defence capabilities
Posted On:
27 MAR 2026 5:15PM by PIB Delhi
The Defence Acquisition Council (DAC), chaired by Raksha Mantri Shri Rajnath Singh on March 27, 2026, granted Acceptance of Necessity (AoN) for various proposals worth an estimated cost of about Rs 2.38 lakh crore. For the Indian Army, approval was accorded for the Air Defence Tracked System, Armoured Piercing Tank Ammunition, High Capacity Radio Relay, Dhanush Gun System and Runway Independent Aerial Surveillance System.
The Air Defence Tracked System will provide real time Air Defence Control and Reporting capability, while the High Capacity Radio Relay will provide reliable and fail proof communication. The Dhanush Gun System will enhance the artillery's capabilities to engage targets at longer ranges in all terrains with enhanced lethality and accuracy. The Runway Independent Aerial Surveillance System will provide surveillance capabilities to the Army units, with the Armoured Piercing Tank Ammunition enhancing the lethality of Anti-Tank ammunition.
For the Indian Air Force, proposals were cleared for the procurement of Medium Transport Aircraft, S-400 Long Range Surface-to-Air Missile System, Remotely Piloted Strike Aircraft and overhaul of Su-30 Aero engine Aggregates. The induction of Medium Transport Aircraft by replacing the transport fleet of AN32 and IL76 will meet the strategic, tactical and operational airlift requirements of the Services.
The S-400 system will counter enemy long-range air vectors targeting vital areas, while the Remotely Piloted Strike Aircraft will enable undertaking Offensive Counter and Coordinated Air Operations, also providing stealth Intelligence, Surveillance and Reconnaissance activities. The overhaul of Su-30 aero engine and its aggregates will increase the service life of the aircraft and fulfil the operational requirement of the Air Force.
For the Indian Coast Guard, AoN was accorded for Heavy Duty Air Cushion Vehicles. These vehicles will be used for multipurpose maritime coastal operational roles, including high-speed coastal patrolling, reconnaissance, search and rescue operations, rendering assistance to ships and carrying personnel and stores including logistics.
In the Financial Year 2025-26, AoN for 55 proposals amounting to Rs 6.73 lakh crore has been accorded by the DAC. Moreover, capital procurement contracts have been signed for 503 proposals amounting to Rs 2.28 lakh crore in the current fiscal year. Both the quantum of AoN given and capital contracts signed, so far, have been the highest in any given Financial Year.
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