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DAC Grants AoN for ₹2.12 Lakh Crore Defence Procurement

The clearance pushes large-scale modernisation through Indian suppliers by allowing proposals to enter formal procurement stages.

Overview

  • The Defence Acquisition Council, chaired by Rajnath Singh, on Monday accorded Acceptance of Necessity (AoN) for about ₹2.12 lakh crore of capital proposals for the Army, Navy and Air Force.
  • The approvals cover artillery, self‑propelled guns, high‑mobility vehicles, Light Multi Role Helicopters, very short‑range air defence, counter‑drone systems, long‑range kamikaze drones, naval offboard decoys and mobile X‑band Doppler weather radars.
  • Roughly 82 percent of the procurement value is slated to be sourced from Indian industry, reflecting the government's push to boost domestic defence manufacturing under indigenisation policies.
  • AoN is an early procedural clearance that does not create contracts or deliveries; the files must still move through requests for proposals, trials, vendor selection and contract awards before equipment is bought or fielded.
  • The move advances multi‑domain modernisation but leaves timelines uncertain and could boost jobs and local supply chains as companies prepare for detailed tendering and production work.