The Ministry of Defence, South Block, New Delhi. (File photo)
New Delhi: The Defence Acquisition Council (DAC) on Thursday approved a fresh round of procurement proposals worth approximately ₹2.38 lakh crore, pushing cumulative acceptances of necessity (AoN) in the current financial year to a record ₹6.73 lakh crore across 55 proposals – the highest in any single fiscal year since the framework was established.
The DAC, chaired by the defence minister, Rajnath Singh, cleared systems spanning the Indian Army, the Indian Air Force (IAF), and the Indian Coast Guard, covering domains from air defence and artillery to strike drones, maritime patrol, and engine sustainment. The breadth and scale of the approvals reflect an accelerating capital modernization push as India seeks to address capability gaps along its contested northern and northeastern frontiers.
What the Army gets
Five systems were cleared for the Army. The most operationally pressing is an air defence tracked system that will integrate real-time control and reporting capability – a gap that has grown more acute as cruise missiles and loitering munitions proliferate in regional theatres, as demonstrated in conflicts in Ukraine and the South Caucasus.
Artillery receives a boost through additional procurement of the Dhanush gun system, an indigenously developed 155mm/45-calibre towed howitzer derived from the Bofors FH-77B design. The Dhanush has completed user trials and is already in limited service; the fresh AoN signals scaled induction across varied terrain profiles, including high-altitude sectors.
Armour-piercing tank ammunition was also cleared, sharpening the anti-armour capability of the Army’s ageing T-72 and T-90 fleet at a time when adversary armour modernization – particularly by China – remains a live concern on the Line of Actual Control.
Two communications and surveillance systems round out the Army package. A high-capacity radio relay will harden tactical communications against jamming and interception, while a runway-independent aerial surveillance system will provide persistent intelligence, surveillance, and reconnaissance (ISR) coverage to ground units without dependence on airfield infrastructure – a significant operational advantage across the Ladakh frontier and the northeastern mountains and highlands, where prepared airstrips are scarce.
Air Force approvals signal doctrinal shift
The IAF secured clearances across four proposals, the most consequential of which may be the remotely piloted strike aircraft programme. The approval marks a formal doctrinal step toward armed unmanned aerial vehicles capable of offensive counterair operations and stealth ISR – a capability gap underlined by the demonstrated effectiveness of armed drones in Ukraine, Nagorno-Karabakh, and the Middle East. India has previously operated armed drones in a limited capacity; this approval suggests a more systematic integration into IAF order of battle.
The medium transport aircraft programme addresses a long-standing airlift deficit. The IAF’s Antonov An-32 tactical transport fleet, supplied by the Soviet Union from the 1980s, has undergone upgrades but is approaching the end of its serviceable life. The Il-76 strategic airlifters are similarly ageing. A replacement programme has been under consideration for years; the AoN formally initiates the procurement process for aircraft to serve all three services.
The council also cleared five additional S-400 Triumf long-range surface-to-air missile batteries, which will supplement the three squadrons already inducted under a 2018 contract with Russia valued at roughly $5.43 billion. The remaining two squadrons from that original contract are expected to be delivered by the end of this year; the fresh AoN covers procurement beyond that. The S-400 provides layered protection against ballistic missiles, cruise missiles, and aircraft at ranges of up to 400km, and is considered among the most capable air defence systems in service globally.
Finally, AoN was granted for the overhaul of Su-30MKI aero-engine aggregates. The Su-30MKI is the IAF’s largest combat aircraft fleet, with over 260 aircraft in service; sustained serviceability of its AL-31FP engines is a persistent maintenance challenge, and the approval will support fleet availability.
Coast guard expands shallow-water reach
The Indian Coast Guard received clearance for heavy-duty air-cushion vehicles – hovercrafts capable of operating across shallow coastal waters, tidal flats, and beaches where conventional patrol vessels cannot operate. Their roles will span high-speed patrol, reconnaissance, search and rescue, and logistics support in littoral environments. India’s western and eastern coastlines, as well as the Sundarbans delta and the Andaman and Nicobar archipelago, present operating conditions for which such platforms are particularly suited.
Record fiscal footprint
Capital procurement contracts signed in 2025-26 now stand at ₹2.28 lakh crore across 503 proposals. The DAC’s record AoN quantum for the year – ₹6.73 lakh crore – represents a significant forward commitment, though AoN is an early-stage approval that precedes tendering, vendor selection, and contract signature; not all proposals will translate into signed contracts within the fiscal year.
India’s defence budget for 2025-26 stands at ₹6.81 lakh crore, of which the capital allocation – covering procurement and infrastructure – is ₹1.80 lakh crore. The gap between AoN approvals and the capital budget reflects the pipeline nature of the process: approvals granted now will mature into contracts and disbursements over several subsequent years.
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