New Delhi: In a major boost for modernization of Indian Armed Forces, the Defence Acquisition Council (DAC) has approved Acceptance of Necessity (AoN) for Capital Acquisitions proposals amounting to an estimate of Rs 13, 165 crores. The DAC's meeting held under the leadership of Defence Minister Rajnath Singh granted the approval. The proposals pushed for modernization and operational needs of the Indian Armed Forces, as per a press release.
Of the total amount approved, procurement worth Rs. 11,486cr. (87%) is from domestic sources. Key approvals include helicopters, guided munition and rocket ammunition. Considering the need of the Indian Army for an Advanced Light Helicopters (ALH) Squadron, to improve its integral lift capability ensuring its operational preparedness, the DAC accorded approval of procurement of 25 ALH Mark III helicopters from M/s HAL under Buy Indian-IDDM at an approximate cost of Rs.3,850 crore.
Giving boost to indigenous design and development of ammunitions, in par with 'Aatmanirbhar Bharat', DAC accorded approval for procurement of Terminally Guided Munition (TGM) and HEPF/RHE Rocket Ammunition under Buy(Indian-IDDM) category at an approx cost ofRs.4,962 crores from domestic sources. Other proposals worth Rs. 4,353 cr. were also accorded AoN by the DAC.
In addition, the DAC also approved a few amendments to the DAP 2020 as a part of business process re-engineering to ensure further ease of doing business for the industry as well as measures to enhance procurement efficiency and reducing timelines.
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