DAC clears eight capital acquisition proposals worth ₹54,000 crore to increase combat potential

The government's Defence Acquisition Council (DAC) approved the capital acquisition of several pieces of military hardware worth more than ₹54,000 crore, including airborne early-warning and control-aircraft systems, torpedoes, and engines for T-90 tanks. In a significant move, the DAC also approved the guidelines for reducing the timelines at various stages of the capital acquisition process to make it ‘faster, effective and efficient.’

According to a PIB statement, the decision on a ‘more effective’ procurement process aligned with the ministry's initiative to celebrate 2025 as the "Year of Reforms". The ministry said the procurement proposals were approved by the DAC, which is chaired by Defence Minister Rajnath Singh. It said the DAC accorded acceptances of necessity (AoNs) or initial approvals to eight capital acquisition proposals amounting to more than ₹54,000 crore.

Also Read: India asks Tulsi Gabbard to designate Khalistani group SFJ as terrorist entity, opens up on its links with ISI

DAC approves capital acquisition projects

The defence ministry added in its statement today DAC also approved the guidelines for reducing the timelines at various stages of the Capital Acquisition Process to make it faster, more effective and more efficient.

The DAC approved the procurement of airborne early warning and control (AEW&C) aircraft systems for the Indian Air Force (IAF). AEW&C systems are capability enhancers that can change the complete spectrum of warfare and exponentially increase the combat potential of various weapon systems.

Also Read: Paras Defence share price surges 10% on ₹142 crore order win from DRDO

The defence ministry said the DAC also cleared a proposal to procure 1,350 HP engines to upgrade the T-90 battle tanks. According to the government, increasing the power-to-weight ratio will enhance the battlefield mobility of these battle tanks, especially in high-altitude areas for combat situations.

"For the Indian Army, AoN was accorded the procurement of a 1,350 HP Engineto upgrade the present 1,000 HP Engine for the T-90 tanks," said the ministry. The DAC also cleared a proposal to procure the Varunastra torpedo for the Indian Navy.

Also Read: Defence PSU stock Mishra Dhatu Nigam in focus after board declares 7.5% dividend. Do you own?

"For the Indian Navy, AoN for procurement of Varunastra torpedoes (combat) was accorded by DAC," the ministry said. The Varunastra is an indigenously developed ship-launched, anti-submarine torpedo made by the Naval Science and Technological Laboratory. The induction of additional quantities of the torpedo would enhance the Navy's capability against submarine threats.