Defence Acquisition Council approves ₹84,560 cr of capital acquisition proposals

In a significant move aimed at bolstering India's defence capabilities, the Defence Acquisition Council (DAC), chaired by Defence Minister, Rajnath Singh, has given the green light for various capital acquisition proposals totaling a whopping ₹84,560 crore. The approvals, which came on February 16, 2024, underscore the nation's commitment to self-reliance, with a strong emphasis on sourcing equipment from Indian vendors.

Under the Buy (Indian-Indigenously Designed Developed and Manufactured (IDDM)) category, the DAC has approved the procurement of next-generation anti-tank mines equipped with seismic sensors and remote deactivation capabilities for enhanced safety. Additionally, procurement of the Canister Launched Anti-Armour Loiter Munition System has been greenlit to bolster operational efficiency and dominance in engaging beyond visual line of sight targets for the mechanised forces.

To fortify air defence systems, particularly in detecting slow, small, and low-flying targets, approval has been granted for the procurement of Air Defence Tactical Control Radar under the Buy (Indian-IDDM) category.

In a bid to strengthen surveillance and interdiction capabilities in maritime areas, the DAC has given the nod for the procurement of Medium Range Maritime Reconnaissance and Multi-Mission Maritime Aircraft through the Buy and Make category, benefiting the Indian Navy and the Indian Coast Guard (ICG).

To ensure Indian Naval Ships stay ahead of potential threats, approval has been granted for the procurement of Active Towed Array Sonar and Heavy Weight Torpedoes to enhance attacking capabilities. Additionally, sustainment support for MH60R aircraft under the Foreign Military Sale route with the US Government has also been sanctioned.

Further enhancing operational capabilities, the DAC has approved the procurement of Flight Refueler Aircraft for the Indian Air Force and Software Defined Radios for the ICG under the Buy (Indian-IDDM) category.

In a move to foster a conducive ecosystem for defence start-ups and promote procurement of advanced technologies from start-ups and MSMEs, the DAC has approved amendments in the Defence Acquisition Procedure (DAP) 2020. These changes aim to incentivize start-ups and MSMEs under the Innovations for Defence Excellence (iDEX) and Technology Development Fund (TDF) schemes, aligning with the nation's vision of 'Ease of Doing Business'.

Defence stocks were in focus today, with Bharat Dynamics (+2.8%), HAL (+1.7%) and BEL (+1.0%) seeing significant gains. However, the news came after market hours.