DAC clears acquisition proposals for helicopters, missiles & ammunition for armed forces

The DAC has approved acquisition of 25 ALH Mark III helicopters from Hindustan Aeronautics Limited (HAL) at a cost of around Rs 3,850 cr.  The ALH helicopters are twin-engine helicopters, based on latest technologies.

Created On: Sep 30, 2021 12:26 IST
DAC clears acquisition proposals for helicopters, missiles & ammunition
DAC clears acquisition proposals for helicopters, missiles & ammunition

The Defence Acquisition Council (DAC) on September 29, 2021 cleared acquisition proposals worth approximately Rs 13,165 crore for modernization and operational needs of the Indian Armed Forces. 

Out of the total approved amount, procurement worth Rs 11,486cr (87 percent) will be done from domestic sources, as per the press statement by the Ministry of Defence. The DAC meeting was chaired by Union Defence Minister Rajnath Singh.

Key Highlights 

•The DAC has approved acquisition of 25 ALH Mark III helicopters from Hindustan Aeronautics Limited (HAL) under Buy Indian scheme at a cost of around Rs 3,850 cr.  The ALH helicopters are twin-engine helicopters, based on latest technologies.

•The procurement of the helicopters is aimed at fulfilling Indian Army's need for an Advanced Light Helicopters (ALH) Squadron to ensure operational preparedness by improving its integral lift capability.

•The  DAC also approved procurement of  HEPF/RHE Rocket Ammunition and Terminally Guided Munition (TGM) at a cost of about Rs 4,962 Crore from domestic sources. 

•The DAC also accorded approval for other capital acquisitions proposals worth Rs 4,353 crore.

•As per sources, the DAC has approved procurement of 75 medium-range, surface-to-air missiles  (MRSAM) for Rs 1700 crore and 155 mm artillery ammunition for Rs 1,300 crore.

Significance

The new acquisition proposals were approved keeping up with the continued thrust towards realising 'Aatmanirbhar Bharat' and 'Make in India' initiatives. The proposals will give a major boost to the indigenous design and development of ammunition. 

Amendments to DAP 2020

The Defence Ministry statement read that the DAC has also approved a few amendments to the Defence Acquisition Procedure (DAP) 2020 as “a part of Business Process Re-engineering to ensure further ease of doing business for the industry as well as measures to enhance procurement efficiency and reducing timelines”.

Defence Minister Rajnath Singh, while addressing a conference of defence manufacturers, also stressed on the need to boost domestic production.

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