India Boosts Defence Capabilities: DAC Clears Major Deals Worth ₹2.38 Lakh Crore

New Delhi: In a significant move to strengthen India’s defence capabilities, the Defence Acquisition Council (DAC) on Thursday approved multiple proposals with an estimated cost of ₹2.38 lakh crore under the ‘Acceptance of Necessity’ (AoN) category. The approvals include the procurement of the Dhanush Gun System for the Army, as well as Medium Transport Aircraft and the S-400 long-range surface-to-air missile system for the Indian Air Force.

The DAC meeting was chaired by Defence Minister Rajnath Singh. According to an official release, key approvals for the Indian Army include 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 capabilities, while the High Capacity Radio Relay will ensure reliable and secure communication. The Dhanush Gun System is expected to enhance artillery strength, enabling accurate and high-impact strikes on long-range targets across varied terrains.

Additionally, the Runway Independent Aerial Surveillance System will boost battlefield surveillance capabilities, and the Armoured Piercing Tank Ammunition will significantly improve anti-tank firepower.

For the Indian Air Force, approvals have been granted for the Medium Transport Aircraft, S-400 long-range surface-to-air missile system, Remotely Piloted Strike Aircraft, and the overhaul of Su-30 aero engines and their components.

The induction of Medium Transport Aircraft will replace aging fleets like AN-32 and IL-76, strengthening strategic, tactical, and operational airlift capabilities across all three services. The S-400 system will counter long-range aerial threats targeting critical assets, while the Remotely Piloted Strike Aircraft will enhance offensive operations, coordinated air missions, and intelligence, surveillance, and reconnaissance (ISR) activities.

The overhaul of Su-30 aero engines will extend the aircraft’s service life and improve operational readiness of the Air Force.

For the Indian Coast Guard, AoN has been granted for the procurement of Heavy Duty Air Cushion Vehicles. These platforms will be used for a wide range of coastal operations, including high-speed patrol, reconnaissance, search and rescue missions, assistance to ships, logistics support, and transportation of personnel and equipment.

In the financial year 2025–26, the DAC has approved 55 proposals worth ₹6.73 lakh crore under AoN. Additionally, capital procurement contracts worth ₹2.28 lakh crore across 503 proposals have already been signed in the current financial year. According to the official statement, this marks the highest-ever figures in terms of AoN approvals and capital procurement contracts in any financial year so far.