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The government on Friday approved a sweeping set of defence procurement proposals worth about Rs 2.38 lakh crore, giving a major push to capacity building across the armed forces.
The approvals granted by the Defence Acquisition Council (DAC), Chaired by Defence Minister Rajnath Singh, have accorded the Acceptance of Necessity (AoN), the first step in capital acquisition process.
The DAC has cleared the procurement of major defence equipment, including 60 Medium Transport Aircraft (MTA) for the IAF, five additional squadrons of the battle-tested S-400 Surface-to-Air Missile (SAM) systems, the Dhanush artillery gun, and an Air Defence Tracked System.
“For the Indian Air Force, proposals were cleared for the procurement of medium transport aircraft, S-400 long-range surface-to-air missile system, remotely piloted strike aircraft and overhaul of SU-30 MKI fleet aero engine aggregates,” the Defence Ministry stated in its statement.
IAF Modernisation Gets A Major Fillip
A substantial portion of the approvals is aimed at strengthening the Indian Air Force transport requirement, including the long-pending requirement for 60 Medium Transport Aircraft (MTA). These aircraft will replace the ageing Antonov AN-32 fleet and are expected to bridge the capability gap between the heavier IL-76 and lighter transport platforms.
The new aircraft are expected to have a payload capacity of 18–30 tonnes. As per sources, of the total, 12 will be acquired in fly-away condition, while the remaining will be manufactured in India, in line with indigenisation goals.
Global contenders include Brazil’s Embraer C-390 and Europe’s Airbus A400M, while Lockheed Martin’s C-130J, already in IAF service, is also in the race. Embraer has tied up with Mahindra Aerospace, while Airbus is yet to name a local partner for the MTA programme.
Boost to Air Defence and Combat Readiness
Five additional squadrons of the S-400 air defence system have also been approved by the DAC, significantly expanding India’s long-range air defence envelope. The system can engage targets at ranges up to 400 km.
India currently operates three S-400 squadrons, with two more expected to be delivered this year under the 2018 deal with Russia. Deliveries had slowed due to disruptions linked to the Russia-Ukraine conflict, but are now back on track, with the fourth system undergoing final trials ahead of induction. The fourth system is expected to be delivered by June.
Army and Coast Guard Procurements
For the Indian Army, the DAC cleared a follow-on order for 300 units of the indigenously developed Dhanush artillery gun system, bringing the total to 114 guns already in service. The proposals also include the procurement of specialised ammunition and air defence tracked systems.
“For the Indian Army, approval was accorded for the Air Defence Tracked System, Armoured Piercing Tank Ammunition, High Capacity Radio Relay, Dhanush Gun System and Runway Independent Aerial Surveillance System,” the statement said.
In addition, approvals were granted for various categories of drones and AL-31 jet engines for the Su-30 MKI fleet.
The Indian Coast Guard is set to receive heavy-duty hovercraft to enhance coastal surveillance and rapid-response capabilities.
“AoN was accorded for Heavy Duty Air Cushion Vehicles. These vehicles will be used for multipurpose maritime coastal operational roles, including high-speed coastal patrolling, reconnaissance, search and rescue operations, rendering assistance to ships and carrying personnel and stores, including logistics,” the statement said.
Procurement Process and Timelines
All approved projects will now move to the next stages under the Defence Acquisition Procedure (DAP) 2020, including issuance of Requests for Proposal (RFP), followed by technical evaluations, field trials, and commercial negotiations. Final contracts will require clearance from the Cabinet Committee on Security.
The full acquisition cycle is expected to take several years before contracts are signed and deliveries begin.
Record Capital Approvals This Year
With these clearances, the DAC has accorded AoN to 55 proposals worth Rs 6.73 lakh crore in the current financial year (2025–26). Additionally, capital procurement contracts worth Rs 2.28 lakh crore for 503 proposals have already been signed during the year, the highest ever for a single financial cycle, according to Defence Ministry officials.
Ravi Shankar
Dr Ravi Shankar has over two decades of experience in communications, print journalism, electronic media, documentary film making and new media.
He makes regular appearances on national television news channels as a commentator and analyst on current and political affairs. Apart from being an acknowledged Journalist, he has been a passionate newsroom manager bringing a wide range of journalistic experience from past associations with India’s leading media conglomerates (Times of India group and India Today group) and had led global news-gathering operations at world’s biggest multimedia news agency- ANI-Reuters. He has covered Parliament extensively over the past several years. Widely traveled, he has covered several summits as part of media delegation accompanying the Indian President, Vice President, Prime Minister, External Affairs Minister and Finance Minister across Asia, Africa and Europe.
