India’s Defence Acquisition Council (DAC) has approved capital acquisitions proposals worth $1.77bn (Rs131.65bn) to support the modernisation of armed forces.
The decision was taken in a meeting chaired by Indian Defence Minister Rajnath Singh.
Of the total amount approved, around $1.55bn (87%) worth of materiel will be procured from domestic sources.
Key proposals that were approved in the meeting include procurement of helicopters, guided munition and rocket ammunition.
DAC approved the procurement of 25 Advanced Light Helicopters (ALH) Mark III choppers from HAL for an approximate cost of $518.7m (Rs38.5bn).
The procurement will improve the Indian Army’s integral lift capability and boost its operational preparedness.
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It also approved procurement of Terminally Guided Munition (TGM) and HEPF/RHE Rocket Ammunition from domestic sources under Buy (Indian-IDDM) category for the cost of around $668.5m (Rs49.62bn).
Additionally, DAC accorded Acceptance of Necessity (AoN) for $586.46m (Rs43.53bn) worth of other proposals.
DAC also approved some amendments to the Defence Acquisition Procedure (DAP) 2020 to further ease of doing business for the industry and enhance procurement efficiency.
According to a Hindustan Times report, India aims to complete the military equipment acquisition process in two years.
This DAC approval comes a week after India’s Ministry of Defence (MoD) placed an order for 118 Arjun Mk-1A Main Battle Tanks (MBTs) for the Indian Army. The $1.02bn (Rs75.23bn) order will be delivered by the Heavy Vehicles Factory (HVF) in Avadi, Chennai, India.