Full Breakdown
India’s Defence Acquisition Council Approves Rs 2.12 Lakh Crore Modernisation Plan
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Core Approval and Scope
On October 26 2026, the Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, granted Acceptance of Necessity (AoN) to capital acquisition proposals valued at approximately Rs 2.12 lakh crore for the Army, Navy and Air Force. The approvals give in-principle administrative clearance for equipment aimed at enhancing mobility, firepower, surveillance, air-defence and counter-drone capabilities.
Key Procurement Categories
- Army – High Mobility Vehicles, Self-Propelled Tracked Gun Systems, Gun Shot Response Systems, Light Multi-Role Helicopters, Very Short-Range Air-Defence Systems, Platform-Based Counter-UAV Systems, long-range unmanned aerial systems, surveillance UAVs, Integrated Surveillance and Strike System, and Long-Range Kamikaze Drone System.
- Navy – Active Offboard Decoy Systems and indigenously designed naval platforms to improve anti-missile defence.
- Air Force – Special Utility Helicopters, air-defence systems, weapons, and Mobile X-Band Doppler Weather Radar for localized weather surveillance.
Domestic Industry Emphasis
The Ministry of Defence said roughly 82 % of the approved procurements are expected to be sourced from Indian industry, underscoring the push for domestic defence manufacturing.
Financial and Contractual Details
A notable component is a Rs 20,000 crore programme to acquire 200 Light Multi-Role Helicopters for the Army and Air Force, with contracts split between the lowest and second-lowest bidders. Potential Indian bidders include Tata-Airbus and the Adani-Leonardo consortium; Bell Helicopters (U.S.) is also expected to submit a proposal.
Operational Impact
The equipment will replace ageing platforms such as the Cheetah and Chetak helicopters, with around 400 slated for retirement. New helicopters will support reconnaissance, combat, search-and-rescue and humanitarian missions in high-altitude regions like Siachen and Arunachal Pradesh. Active Offboard Decoy Systems are intended to counter modern anti-ship missiles, improving naval survivability.
Official Statements & Responses
Defence Minister Rajnath Singh presented the approvals as a major step toward modernising the forces and strengthening self-reliance. The Ministry of Defence described the proposals as “in-principle administrative clearance” enabling procurement of the listed platforms.
Data & Statistics Summary
| Service | Major Systems Approved | Domestic Sourcing Target |
|---|---|---|
| Army | HMVs, SPG systems, GSRS, Light Multi-Role Helicopters, VSHORADS, C-UAS, long-range drones, surveillance UAVs, Integrated Surveillance & Strike, Kamikaze drones | ~82 % |
| Navy | Active Offboard Decoy Systems, indigenously designed naval platforms | ~82 % |
| Air Force | Special Utility Helicopters, air-defence systems, weapons, Mobile X-Band Doppler Weather Radar | ~82 % |
| Total Value | Rs 2.12 lakh crore | — |
What’s Next
The Ministry of Defence said contracts will be awarded after competitive bidding, with the Light Multi-Role Helicopter programme split between the two lowest bidders. Further announcements on contract awards and delivery schedules are expected as the bidding concludes.