GOVERNMENT APPROVES BIG-TICKET MILITARY ACQUISITION WORTH ₹84,560 CRORE ($10.57 BN)

The Defence Acquisition Council (DAC) granted approval for Acceptance of Necessity (AoN) for various capital acquisition proposals amounting to ₹84,560 crore ($10.57 billion). The DAC also notified amendments in Defence Acquisition Procedure (DAP) 2020, reducing the overall procurement cycle for Start-Ups & MSMEs.

- MANISH KUMAR JHA

THE DEFENCE ACQUISITION COUNCIL (DAC), UNDER THE chairmanship of the Defence Minister, accorded approval for Acceptance of Necessity (AoNs) for various capital acquisition proposals worth ₹84,560 crore. The DAC’s approval on February 16 focuses on the procurement of various equipment from Indian vendors, leading to a simplified procedural process and payment systems for startups and Micro, Small & Medium Enterprises (MSMEs) in the defence sector.

The AoNs include key systems and sub-systems which include next-generation anti-tank mines, Air Defence Tactical Control Radar, Heavy Weight Torpedoes, Medium Range Maritime Reconnaissance and Multi-Mission Maritime Aircraft. Addressing the criticality of the impending Flight Refueler Aircraft (FRA), the DAC also accorded AoN for the new FRAs, boosting the IAF’s capabilities for greater operational reach for the fighter jets.

Additionally, the DAC also cleared the proposal for procurement of the Software Defined Radios for the Indian Armed Forces under the Buy (Indian-IDDM) category (DAP 2020).

This will fulfil the ICG requirement for high-speed communication with secure networking capability for seamless information exchange between the ICG and the Indian Navy units.

POLICY AMENDMENTS FOR DAP 2020

The MoD has brought out a significant change which aims to promote the procurement of Advanced technologies from startups and MSMEs. The amendments imply that such initiative and development under the Innovations for Defence Excellence (iDEX) and Technology Development Fund schemes will be prioritised and accorded much-needed change in the procurement cycle.