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India Clears Massive Rs 2.38 Lakh Crore Defence Deals for Army, Air Force

The Defence Acquisition Council has granted Acceptance of Necessity for proposals worth approximately Rs 2.38 lakh crore to enhance the capabilities of the Indian armed forces. Key approvals for the Army include an Air Defence Tracked System and the Dhanush Gun System for long-range artillery. For the Air Force, major clearances involve the procurement of the S-400 missile system, Medium Transport Aircraft, and Remotely Piloted Strike Aircraft. This fiscal year has seen record defence procurement activity, with AoNs for Rs 6.73 lakh crore and signed contracts worth Rs 2.28 lakh crore.

Key Points: India Approves Rs 2.38 Lakh Crore Defence Proposals

  • Rs 2.38 lakh crore proposals cleared
  • Army gets new air defence & artillery
  • Air Force to acquire S-400 & transport aircraft
  • Record defence spending in FY 2025-26
2 min read

Defence Acquisition Council clears proposals worth Rs 2.38 lakh crore to augment capabilities

DAC clears major defence acquisitions for Army, Air Force & Coast Guard, including S-400, new aircraft, and advanced artillery systems.

"Both the quantum of AoN given and capital contracts signed, so far, have been the highest in any given Financial Year. - Defence Ministry"

New Delhi, March 27

The Defence Acquisition Council, chaired by Defence Minister Rajnath Singh on March 27, 2026, granted Acceptance of Necessity for various proposals worth an estimated cost of about Rs 2.38 lakh crore. For the Indian Army, approval was accorded for 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 capability, while the High Capacity Radio Relay will provide reliable and fail proof communication. The Dhanush Gun System will enhance the artillery's capabilities to engage targets at longer ranges in all terrains with enhanced lethality and accuracy. The Runway Independent Aerial Surveillance System will provide surveillance capabilities to the Army units, with the Armoured Piercing Tank Ammunition enhancing the lethality of Anti-Tank ammunition.

For the Indian Air Force, proposals were cleared for the procurement of Medium Transport Aircraft, S-400 Long Range Surface-to-Air Missile System, Remotely Piloted Strike Aircraft and overhaul of Su-30 Aero engine Aggregates. The induction of Medium Transport Aircraft by replacing the transport fleet of AN32 and IL76 will meet the strategic, tactical and operational airlift requirements of the Services.

The S-400 system will counter enemy long-range air vectors targeting vital areas, while the Remotely Piloted Strike Aircraft will enable undertaking Offensive Counter and Coordinated Air Operations, also providing stealth Intelligence, Surveillance and Recognition activities. The overhaul of Su-30 aero engine and its aggregates will increase the service life of the aircraft and fulfil the operational requirement of the Air Force.

For the Indian Coast Guard, AoN was accorded for Heavy Duty Air Cushion Vehicles. These vehicles will be used for multipurpose maritime coastal operational roles, including high-speed coastal patrolling, reconnaissance, search and rescue operations, rendering assistance to ships and carrying personnel and stores including logistics.

In the Financial Year 2025-26, AoN for 55 proposals amounting to Rs 6.73 lakh crore has been accorded by the DAC. Moreover, capital procurement contracts have been signed for 503 proposals amounting to Rs 2.28 lakh crore in the current fiscal year. Both the quantum of AoN given and capital contracts signed, so far, have been the highest in any given Financial Year.

- ANI

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Reader Comments

P
Priya S
While strengthening defence is crucial, I hope a significant portion of this budget also flows into our domestic manufacturing under 'Make in India'. We need to build our own tech ecosystem, not just be buyers.
V
Vikram M
The Dhanush gun system is a proud moment! It's based on the original Bofors design but improved by our own OFB. Shows we can indigenise and upgrade. The focus on artillery and tank ammunition is very important for our northern borders.
S
Sarah B
As an expat following Indian news, this level of investment is impressive. The Coast Guard getting those air cushion vehicles is smart for coastal security. The numbers (Rs 6.73 lakh crore AoN!) show serious intent.
R
Rohit P
Good move, but the proof will be in delivery. We've seen approvals before, then delays and cost overruns. Hope the Su-30 engine overhaul happens on time – our squadrons need those birds flying.
K
Kavya N
Finally some focus on air defence and surveillance! The Runway Independent Aerial Surveillance System for the Army is crucial for mountain areas. Our soldiers deserve the best tools to protect the borders. Proud of this decision.

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