India Approves Rs 45,000 Crore Defense Procurement Proposals

September 16, 2023

India has given the green light to nine defense procurement proposals valued at approximately Rs 45,000 crore. These proposals, sanctioned under the ‘Make in India’ initiative, include the acquisition of 12 Su-30 MKI fighter jets, Dhruvastra air-to-surface missiles, and upgrades for the Dornier aircraft. The decision comes amidst the ongoing border standoff with China in eastern Ladakh. The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, granted the Acceptance of Necessity (AoN) for these projects. The focus is on sourcing from Indian vendors, aligning with the ‘Aatmanirbhar Bharat’ (self-reliant India) goal, and enhancing indigenization efforts.

How does the ‘Make in India’ initiative factor into these defense procurement decisions?

These procurement proposals are aligned with the ‘Make in India’ initiative, emphasizing the sourcing of defense equipment from Indian vendors, fostering self-reliance in defense production.

Why is the avionics upgrade of the Dornier fleet considered significant, and what issues have been reported with these aircraft in the past?

The upgrade of the Dornier fleet aims to enhance accuracy and reliability. The aircraft experienced technical snags on multiple occasions earlier this year.

What is the Acceptance of Necessity (AoN) in the context of defense procurement, and who chaired the meeting that granted AoN for these proposals?

AoN signifies the initial approval for defense acquisition projects. The meeting that granted AoN for these proposals was chaired by Defence Minister Rajnath Singh.

How does India’s defense procurement strategy contribute to the ‘Aatmanirbhar Bharat’ goal?

Sourcing from Indian vendors and focusing on indigenous production supports the ‘Aatmanirbhar Bharat’ goal of self-reliance in various sectors, including defense.

What directives did Defence Minister Rajnath Singh provide in the DAC meeting regarding indigenous content, and to whom were these directives directed?

Rajnath Singh directed the Chief of Defence Staff, Service Chiefs, Defence Secretary, and DG (Acquisition) to work on increasing the minimum indigenous content threshold in consultation with the Indian industry.

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