DAC Approves ₹79,000 Crore Defence Deals, Boosting Indian Manufacturing | Quick Digest
India's Defence Acquisition Council (DAC) has approved procurement proposals worth approximately ₹79,000 crore, aimed at bolstering the capabilities of the armed forces. This significant move prioritises indigenous manufacturing, benefiting major Indian defence companies like BEL and HAL.
DAC approved defence procurement proposals worth approximately ₹79,000 crore on December 29, 2025.
The approvals focus on boosting indigenous defence manufacturing under 'Aatmanirbhar Bharat' initiative.
Key beneficiaries include Bharat Electronics (BEL), HAL, Solar Industries, and Bharat Dynamics (BDL).
Procurements cover loiter munitions, radars, Pinaka rockets, drone detection systems, and Astra Mk-II missiles.
The approvals are 'Acceptance of Necessity,' indicating long-term procurement cycles.
A separate ₹1,600 crore lease for two more Predator drones was also cleared.
The Defence Acquisition Council (DAC) of India, chaired by Defence Minister Rajnath Singh, approved capital acquisition proposals worth approximately ₹79,000 crore (or ₹80,000 crore in some reports) on December 29, 2025. This substantial boost aims to enhance the operational capabilities of the Indian Army, Navy, and Air Force, with a strong emphasis on indigenous design, development, and manufacturing. A significant portion, reportedly around 90%, of these procurements will be sourced from domestic industries, aligning with the 'Aatmanirbhar Bharat' (self-reliant India) initiative.
Among the key items granted 'Acceptance of Necessity' (AoN) are Loiter Munition Systems for artillery, Low Level Light Weight Radars, Long Range Guided Rocket Ammunition for the Pinaka Multiple Launch Rocket System (MRLS), and the Integrated Drone Detection & Interdiction System Mk-II for the Indian Army. For the Indian Navy, proposals included Bollard Pull (BP) Tugs, High Frequency Software Defined Radio (HF SDR) Manpack systems, and the leasing of High Altitude Long Range (HALE) Remotely Piloted Aircraft Systems (RPAS). The Indian Air Force's approvals encompassed items such as Automatic Take-off Landing Recording Systems and Astra Mk-II Air-to-Air Missiles.
Major beneficiaries of these approvals are expected to be public sector undertakings and private Indian defence companies. These include Bharat Electronics Limited (BEL), Hindustan Aeronautics Limited (HAL), Solar Industries, Zen Technologies, Bharat Dynamics Limited (BDL), Mazagon Dock Shipbuilders Ltd, and Cochin Shipyard. It is important to note that AoN is the initial step in the lengthy procurement process, and actual revenue generation for these companies from these approvals can take several years. Additionally, the DAC also cleared the leasing of two more MQ-9B Predator drones for approximately ₹1,600 crore, further enhancing surveillance capabilities.
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