Defence Acquisition Council approves proposals worth ₹2.38 lakh crore

The Defence Acquisition Council, chaired by Defence Minister Rajnath Singh, on Friday (March 27, 2026) granted Acceptance of Necessity (AoN) for capital acquisition proposals worth about ₹2.38 lakh crore, significantly enhancing India’s combat, surveillance and mobility capabilities across the armed forces.

For the Indian Army, approvals include air defence tracked systems, armoured piercing tank ammunition, high capacity radio relay, the Dhanush gun system and runway independent aerial surveillance systems. These systems are aimed at strengthening real-time air defence control, improving secure communication, boosting long-range artillery firepower and enhancing battlefield surveillance and anti-tank lethality.

The Indian Air Force received approvals for the procurement of medium transport aircraft, the S-400 long range, surface-to-air missile system, remotely piloted strike aircraft and overhaul of Su-30 aero engine aggregates. The new transport aircraft will replace ageing AN-32 and IL-76 fleets, enhancing strategic and tactical airlift capability. The S-400 system will bolster air defence, while remotely piloted platforms will enable precision strike and advanced intelligence, surveillance and reconnaissance missions. Engine overhauls will extend the operational life of the Su-30 fleet.

For the Indian Coast Guard, AoN was accorded for heavy duty air cushion vehicles to support high-speed coastal patrolling, reconnaissance, search and rescue, and logistics operations.

In FY 2025–26, the DAC has accorded AoN for 55 proposals worth ₹6.73 lakh crore, while contracts for 503 proposals valued at ₹2.28 lakh crore have been signed — marking the highest ever procurement activity in a single financial year, officials said.