DAC Clears Rs 3.60 Lakh Crore ‘Mother of All Defence Deals’: Rafales, P-8I Aircraft, Indigenous Marine Engines Get Go-Ahead

In one of the largest capital acquisition decisions in recent years, the Defence Acquisition Council (DAC) on February 12 accorded Acceptance of Necessity (AoN) for proposals worth about Rs 3.60 lakh crore, covering critical requirements of the Indian Air Force, Army, Navy and Coast Guard.

The approvals, cleared at a meeting chaired by Defence Minister Rajnath Singh, formally move forward several big-ticket proposals that BharatShakti had reported were under active consideration, including the 114 Multi Role Fighter Aircraft (MRFA) programme, additional P-8I maritime patrol aircraft, and indigenous marine gas turbine generators.

IAF: MRFA, Combat Missiles and High-Altitude Surveillance

For the Indian Air Force, the DAC granted AoN for the procurement of Multi Role Fighter Aircraft (MRFA), widely understood to be the Rafale, along with combat missiles and Air-Ship Based High Altitude Pseudo Satellite (AS-HAPS) systems.

The MRFA programme is aimed at restoring squadron strength and reinforcing air dominance capability across the spectrum of conflict. The Defence Ministry stated that the induction will significantly enhance the IAF’s long-range offensive and deterrence capability.

Importantly, the majority of the aircraft are to be manufactured in India, signalling a major industrial component in what is expected to be one of the most consequential fighter acquisitions in decades.

The combat missiles cleared under the proposal will strengthen stand-off ground-attack capability, providing deep-strike reach with high accuracy – a critical operational requirement in modern air warfare.

The AS-HAPS systems will provide persistent Intelligence, Surveillance and Reconnaissance (ISR), electronic intelligence, telecommunications and remote sensing support for military operations. Such high-altitude platforms are increasingly seen as force multipliers in contested environments.

BharatShakti had earlier reported that the MRFA case was moving toward a decisive stage. With AoN now granted, the programme formally enters the next phase of acquisition.

Also Read: DPB Gives Initial Nod for 114 Rafale Jets, DAC Approval Next

Indian Navy: P-8I Expanded Maritime Reach and Indigenous Marine Engines 

For the Navy, the DAC cleared AoN for the procurement of P-8I Long Range Maritime Reconnaissance Aircraft and a 4 MW Marine Gas Turbine-based Electric Power Generator under the Make-I category of DAP 2020.

The additional P-8I aircraft will significantly strengthen India’s anti-submarine warfare capability, maritime surveillance grid and long-range maritime strike capacity. The Navy’s existing P-8I fleet has been central to monitoring submarine activity in the Indian Ocean Region.

Equally significant is the clearance for indigenous marine gas turbine generators. The induction of 4 MW systems under Make-I is aimed at reducing dependence on foreign manufacturers and ensuring self-reliance in onboard power generation for naval platforms.

BharatShakti had previously reported that indigenous propulsion and power systems were high on the Navy’s priority list. The AoN signals that the push for technological sovereignty in critical naval systems has gathered pace.

Also Read: Mega Defence Procurements Likely to Get DAC Nod Next Week; Rafale, P-8I, Indigenous Engines on Agenda

Indian Army: Mobility and Battlefield Sustainability

For the Indian Army, AoN was accorded for the procurement of Anti-Tank Mines (Vibhav) and the overhaul of vehicle platforms of Armoured Recovery Vehicles (ARVs), T-72 tanks and Infantry Combat Vehicles (BMP-II).

The Vibhav anti-tank mines are intended to create obstacle systems capable of delaying and disrupting enemy mechanised formations.

The overhaul of ARVs, T-72s and BMP-II platforms will extend service life and improve operational readiness, a key requirement as the Army continues to maintain high levels of deployment.

Indian Coast Guard: Surveillance Upgrade

The DAC also cleared AoN for Electro-Optical/Infra-Red (EO/IR) systems for Dornier aircraft operated by the Indian Coast Guard. The systems will enhance maritime surveillance capability and improve detection in coastal and offshore areas.

A Procurement Cycle of Scale

The DAC is the apex body for capital acquisitions in the Ministry of Defence. Grant of AoN does not constitute a contract but marks the formal start of the procurement process, including technical evaluations and commercial negotiations, before final approval by the Cabinet Committee on Security (CCS).

With Rs 3.60 lakh crore worth of approvals spanning fighters, missiles, maritime surveillance aircraft, indigenous naval power systems, armoured fleet overhaul and ISR platforms, the February 12 meeting represents a broad-spectrum modernisation push.

For the Air Force, it addresses numbers and reach.

For the Navy, it combines maritime dominance with indigenisation.

For the Army, it reinforces battlefield resilience.

For the Coast Guard, it sharpens coastal vigilance.

Proposals that BharatShakti has been tracking for months have now crossed a critical threshold.

India’s next major defence procurement cycle has formally begun, which will take a decade or so.

Ravi Shankar