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Defence Acquisition Council approves proposals worth ₹2.38 lakh crore

March 27, 2026 4 min read Internal Security GS3 (Internal Security Defence Procurement Indigenisation)
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What Happened

  • The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, on March 27, 2026, granted Acceptance of Necessity (AoN) for defence procurement proposals worth ₹2.38 lakh crore in a single session — the largest single-day approval in India's defence history.
  • The proposals span all three Services (Army, Navy, Air Force) and the Indian Coast Guard, covering systems for air defence, ground mobility, communications, maritime surveillance, and strategic strike capability.
  • Key approvals include: five additional S-400 Sudarshan air defence squadrons (IAF), overhaul of Su-30 MKI aero engines (IAF), induction of medium transport aircraft (replacing AN-32 and IL-76 fleets), Dhanush towed artillery gun system (Army), Air Defence Tracked System (Army), Armour-Piercing Tank Ammunition (Army), High Capacity Radio Relay communications (Army), Runway Independent Aerial Surveillance System (Army), and Heavy Duty Air Cushion Vehicles (Coast Guard).
  • The BrahMos extended-range cruise missile (800 km range variant) also reportedly received AoN in the same session.
  • The Ghatak Unmanned Combat Aerial Vehicle (UCAV) — a stealth strike drone developed by DRDO — received the go-ahead for induction.
  • In FY 2025-26, total AoN granted: 55 proposals worth ₹6.73 lakh crore; capital contracts signed: 503 proposals worth ₹2.28 lakh crore — both all-time annual records.

Static Topic Bridges

Defence Acquisition Council (DAC): Structure and Procurement Framework

The DAC was established in 2001 following the Kargil War (1999), based on the recommendations of the Group of Ministers on Reforming the National Security System. It serves as the apex decision-making body for capital acquisition in the Indian Ministry of Defence, bringing civilian and military procurement planning under a single high-level forum.

  • Chairman: Defence Minister; members include all three Service Chiefs, Chief of Integrated Staff Committees (CISC), Defence Secretary, Secretary (Defence R&D), Secretary (Defence Production), and Director General (Acquisition).
  • Key output: Acceptance of Necessity (AoN) — formal green light for a procurement proposal to enter the acquisition pipeline.
  • Governed by the Defence Acquisition Procedure (DAP) 2020, which replaced DPP 2016 and introduced new categories like 'Make in India' sub-categories (Make-I, Make-II, Make-III) and Innovations for Defence Excellence (iDEX) procurements.
  • 'Buy (Indian – IDDM)' category [Indigenously Designed, Developed, and Manufactured] — highest preference in DAP 2020 hierarchy, requiring 50%+ indigenous content.
  • AoN granted ≠ contract signed; after AoN, proposals go through Request for Proposal (RFP), technical evaluation, commercial negotiation, and government approval before contract.

Connection to this news: The ₹2.38 lakh crore AoN represents procurement intentions across a 5–10 year horizon. The scale reflects India's accelerated defence modernisation pace, targeting both import substitution and multi-theatre capability development.

Atmanirbhar Bharat in Defence: Indigenisation Push

The 'Atmanirbhar Bharat' (self-reliant India) initiative in defence, launched in May 2020 by Finance Minister Nirmala Sitharaman, aims to reduce India's dependence on defence imports — historically among the world's highest — by promoting domestic design, development, and manufacturing.

  • India ranked among top 4 global arms importers for two decades; defence imports accounted for ~65% of procurement as recently as 2018.
  • Positive Indigenisation Lists (PILs): Three lists (PIL-I: 101 items 2020; PIL-II: 108 items 2021; PIL-III: 2022) — items on PILs can only be procured domestically after a notified date.
  • Defence FDI ceiling raised to 74% under automatic route (100% with government approval) in 2020.
  • Defence exports target: ₹35,000 crore ($4.3 billion) by 2025 — India achieved ₹21,083 crore in FY2023-24, with 2025 target expected to be nearly met.
  • iDEX (Innovations for Defence Excellence): Start-up funding scheme, ~300+ challenges issued, 100+ innovations contracted.
  • Dhanush Gun System in this AoN is indigenously developed by Ordnance Factory Board (now Advanced Weapons and Equipment India Ltd.) — a 155mm/45 calibre howitzer derived from the Bofors design.

Connection to this news: While the S-400 and Su-30 engine overhaul are Russia-sourced, several approvals in this DAC session — Ghatak UCAV (DRDO), Dhanush Gun, Armour Piercing ammunition — are domestic programmes, reflecting the dual-track approach of meeting near-term capability gaps via imports while building long-term indigenous capacity.

Ghatak UCAV: India's First Indigenous Stealth Combat Drone

The Ghatak (meaning 'lethal' in Hindi) is India's first indigenously developed Unmanned Combat Aerial Vehicle (UCAV), a product of DRDO's Aeronautical Development Establishment (ADE) in Bengaluru. It is designed as a stealthy flying-wing platform capable of carrying precision strike munitions.

  • Design: Tailless flying-wing configuration with internal weapons bay — optimised for low radar cross-section.
  • Scale demonstrator (SWiFT — Stealth Wing Flying Testbed) successfully tested in July 2022 and subsequent trials.
  • Intended role: Suppression of Enemy Air Defences (SEAD), deep strike behind enemy lines, intelligence-surveillance-reconnaissance.
  • Payload: Designed to carry smart bombs and stand-off weapons; exact payload capacity classified.
  • Significance: Makes India one of a small group of countries with indigenous UCAV development programmes (US, China, Russia, UK, Turkey).
  • Part of India's drone warfare modernisation: also includes acquisition of armed Predator B/MQ-9B drones from the US (30 drones, ~$3.99 billion contract signed 2024) and TAPAS MALE UAV (DRDO).

Connection to this news: The DAC's AoN for Ghatak induction marks the transition from R&D demonstrator to a sanctioned acquisition programme — a significant step in India's autonomous strike warfare capability that complements the air defence acquisitions (S-400) approved in the same session.

Key Facts & Data

  • Single-day DAC approval: ₹2.38 lakh crore (March 27, 2026).
  • FY 2025-26 cumulative AoN: 55 proposals, ₹6.73 lakh crore (annual record).
  • FY 2025-26 contracts signed: 503 proposals, ₹2.28 lakh crore (annual record).
  • Dhanush Gun: 155mm/45 calibre indigenously developed howitzer.
  • Ghatak UCAV: Stealth flying-wing, developed by DRDO ADE, Bengaluru.
  • AN-32 replacement: IAF transport fleet upgrade (AN-32 fleet ~100 aircraft, decades old).
  • Heavy Duty Air Cushion Vehicles for Coast Guard: multi-role maritime coastal operations.