Government clears defence projects worth 80,000 cr

October 25, 2014

The Defence Acquisition Council has given the clearance to defence projects amounting to 80,000 cr. Multiple deals that involve either upgradation of equipments or capability enhancement of the Navy were given approval. Other projects that have been approved are:-

Indigenous production of six submarines
Procurement of 8,000 Israeli anti-tank guided missiles
Procurement of 12 upgraded Dornier surveillance aircraft with enhanced sensors from HAL at Rs. 1,850 cr
Purchase of 8,356 Anti Tank Guided Missile from Israel worth Rs 3,200 cr (This is being bought instead of USA’s Javelin missile). The Army will also purchase 321 launchers for the missile
Purchase of 362 infantry fighting vehicle from the Ordinance Factory Board in Medak, West Bengal for Rs 662 cr
Purchase of 1,761 units of five spoke 7.5 tonne radio containers for Rs 662 cr and 1,768 critical rolling stock – open and closed wagons for transport of military equipments at a cost of Rs 740 cr from domestic vendors
Purchase of equipments for classified operations of the Navy

Indigenous production of submarines

Six submarines equipped with land attack cruise missiles will be produced in India at a cost of Rs. 50,000 cr. This will be in furtherance of the Government’s Make in India initiative. A committee will be formed to make a study of both public and private shipyards to determine which of them have the capacity and manpower to build six submarines. After the study is completed, a Request for Proposal (RFP) will be issued to the port that has been identified by the study

About Defence Acquisition Council (DAC)

The DAC was setup in 2001, as one of the initiatives in the slew of reforms carried out after the Kargil War.
The Council evaluates the long-term integrated perspective plan for the Armed Forces, determines the necessity of acquiring equipment and gives approval to various defence deals. It also has to approve any changes in already approved acquisition processes. It also recommends major procurements to the CCS (Cabinet Committee on Security) for approval.
The Council is chaired by the Defence Minister. The members of the Council include Defence Secretary, Chiefs of Army, Navy & Air Force, Chief of DRDO, amongst others.

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