DAC approves proposals for capital acquisition of equipment for armed forces worth Rs. 2,290 crores

The Defence Acquisition Council (DAC) approved the proposals for the capital acquisition of various equipment required by the Armed Forces of India at an approximate cost of Rs. 2,900 crores. The approval was given by Defence Minister Rajnath Singh headed the DAC meeting on September 28, 2020.

The various equipment for the armed forces will include the procurement of 72,000 assault rifles from the United States, amid the ongoing border dispute with China. The new policy of the government includes the procurement from both the domestic and foreign vendors. It aligns with PM Narendra Modi’s vision of Atmanirbhar Bharat and empowering the Indian Domestic Industry through the Make in India initiative.

Defence Acquisition Council headed by Raksha Mantri Shri Rajnath Singh accords approval for various arms and equipment worth Rs. 2,290 crore https://t.co/YAFyJcC0eo @DefenceMinIndia @rajnathsingh @RajnathSingh_in @IAF_MCC @drajaykumar_ias @indiannavy @adgpi @PIB_India @DRDO_India

— A. Bharat Bhushan Babu (@SpokespersonMoD) September 28, 2020

Equipment under buy Indian category:

• Under the buy Indian category, DAC has approved the procurement of Smart Anti Airfield Weapon and Static HF Trans-receiver sets.

• The HF radio sets will enable seamless communication for the field units of Ari Force and Army and are being procured approximately at a cost of Rs. 540 crores.

• The Smart Anti-Airfield Weapon is being procured at an approx. cost of Rs. 970 crores. It will add to the firepower of the Air Force and Navy.

• Further, in order to equip the Frontline troops of the Indian Army, DAC has given the approval for the procurement of SIG SAUER Assault Rifles costing approx Rs. 780 crores.

About Defence Acquisition Procedure (DAP):

The Defence Acquisition Procedure (DAP)- 2020 was unveiled by the Defence Minister Rajnath Singh on September 28, 2020. The procedure was first introduced in 2002 and since then it has been revised periodically for achieving self-reliance in defence manufacturing and to provide a boost to the growing domestic industry.  

DAP will be applicable with effect from October 1, 2020. The significance of the procedure is that it has been aligned with the government’s vision of creating Atmanirbhar Bharat as well as empowering the Indian Domestic Industry through Make in India with an aim of turning India into a global manufacturing hub.

The new DAP 2020 includes provisions to encourage Foreign Direct Investment (FDI) to establish manufacturing hubs both for exports and import substitution while giving protection to the interests of the Domestic Industry of India.