DAC Approves ₹2.12 Lakh Crore Defence Procurement Package

On 26 October 2026, the Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, granted Acceptance of Necessity (AoN) for capital acquisition proposals worth approximately ₹2.12 lakh crore for the Indian Armed Forces. About 82 per cent of the proposed procurement value is earmarked for sourcing from Indian industry. AoN is an in-principle clearance; it is not a final contract or confirmation that equipment has been delivered.

Defence Acquisition Council and Procurement

The DAC is the Ministry of Defence’s highest decision-making body for capital acquisitions for the Armed Forces. It is chaired by the Defence Minister. Acceptance of Necessity is an early stage in the defence procurement process, permitting a proposal to proceed to subsequent acquisition steps. Contract award and delivery follow later stages and are not implied by AoN alone.

The proposals cover platforms, weapons and surveillance systems for the Indian Army, Indian Navy and Indian Air Force. Army approvals include High Mobility Vehicles, Self-Propelled Tracked Gun Systems, Gun Shot Response Systems, Very Short-Range Air Defence Systems, counter-unmanned aerial systems, surveillance UAVs and long-range kamikaze drones.

Platforms and Operational Systems

The Army’s Self-Propelled Tracked Gun System is intended to combine mobility with artillery firepower for mechanised formations. A Gun Shot Response System detects and locates hostile gunfire. Very Short-Range Air Defence Systems are man-portable air-defence weapons designed to engage aerial threats. Counter-unmanned aerial systems are intended to counter hostile drones.

The Indian Navy received AoN for Active Offboard Decoy Systems, which create false targets to counter anti-ship missile threats, as well as other major naval platforms. Air Force proposals include Special Utility Helicopters, air-defence systems, weapons and Mobile X-Band Doppler Weather Radar Systems for localised weather surveillance.

Indigenous Production and Service Requirements

The package includes nearly 200 Light Multi-Role Helicopters for the Army and Air Force, with an estimated proposal value of ₹20,000 crore. Their roles include reconnaissance, surveillance, combat, search and rescue, and humanitarian assistance. Production is mandated in India; the helicopters are also intended to partly replace ageing Cheetah and Chetak fleets.

The domestic sourcing share of approximately 82 per cent is associated with the Aatmanirbhar Bharat objective in defence manufacturing. The approved proposals span land, maritime and air capabilities across the three services.

Important Facts for Exams

• The Defence Acquisition Council is chaired by the Union Defence Minister.
• Acceptance of Necessity is an in-principle approval and does not constitute a signed procurement contract.
• Active Offboard Decoy Systems are intended to create false targets against anti-ship missiles.
• Light Multi-Role Helicopters are proposed for both the Indian Army and the Indian Air Force.

The package covers capital acquisition proposals for all three Indian Armed Forces. Approximately 82 per cent of its value is earmarked for Indian industry.