DAC clears ₹52,000 crore defence procurement for Army, Navy, Air Force
Synopsis
Key Takeaways
The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, on Friday, 4 July 2025, accorded Acceptance of Necessity (AoN) for capital acquisition proposals worth approximately ₹52,000 crore to strengthen the operational capabilities of the Indian Army, Navy, and Air Force. The approvals span anti-drone systems, missiles, kamikaze drones, naval unmanned aerial systems, and high-altitude surveillance platforms, according to the Ministry of Defence.
What the Indian Army Gets
The DAC cleared six major procurement proposals for the Army. These include the Anti-UAV Electronic Warfare System 'AKASH TARANG', which will provide protection against unmanned aerial threats to Army formations, and the Man Portable Anti-Tank Guided Missile (MPATGM) system, designed to strengthen infantry capability against enemy armoured and mechanised forces.
Also approved were the Medium Range Surface-to-Air Missile (MRSAM) weapon system for medium-range air defence, the Very Short Range Air Defence System (V-SHORADS) — equipped with multi-spectral sensing to improve resilience against countermeasures — and an Active Protection System to enhance tank survivability. Rounding out the Army package is a Jet-Based Kamikaze Drone System, intended to deliver greater lethality and electronic warfare capability in a cost-effective manner.
Naval Capabilities Being Strengthened
For the Indian Navy, the council approved three proposals: the Multi Influence Ground Mine (MIGM), the Naval Shipborne Unmanned Aerial System (NSUAS), and a Land Based Testing Facility (LBTF) for electric propulsion systems.
According to the Ministry of Defence, the MIGM will enhance the Navy's ability to deny freedom of manoeuvre to adversaries. The NSUAS, equipped with advanced sensors, will improve maritime surveillance and situational awareness. The proposed LBTF will support development and validation of propulsion motors for naval platforms — a critical step as the Navy transitions toward electric propulsion architectures.
Air Force's High-Altitude Surveillance Push
The Indian Air Force received approval for the procurement of a Fixed-Wing Based High Altitude Pseudo Satellite (FW-HAPS). The platform will provide persistent intelligence, surveillance, and reconnaissance (ISR) capabilities, alongside telecommunications and remote sensing functions — effectively extending the Air Force's eyes well beyond conventional aircraft altitudes.
What AoN Means and What Comes Next
The AoN is the in-principle approval granted by the DAC before the formal acquisition process is initiated. It does not constitute a final contract; tendering, vendor selection, and financial negotiations follow. Notably, the scale of Friday's clearances — at ₹52,000 crore — reflects continued prioritisation of domestic defence manufacturing under the 'Aatmanirbhar Bharat' framework, with several of the approved systems sourced from Indian industry. The procurement pipeline will now move to the Request for Proposal stage for each platform, with timelines varying by system complexity.