Defence Ministry Clears Procurement Proposals Worth Over Rs 54,000 Crore

The Defence Acquisition Council granted on Thursday acceptance of necessity for eight capital-acquisition proposals worth over Rs 54,000 crore.

The approvals by the DAC, under the chairmanship of Defence Minister Rajnath Singh, are aimed at enhancing the capabilities of the Indian armed forces through procurement of advanced military equipment, the Ministry of Defence said in a release.

In line with the government's decision to observe 2025 as the 'Year of Reforms' in the Ministry of Defence, the DAC also approved new guidelines aimed at reducing procurement timelines and making the capital acquisition process more efficient, it added.

For the Indian Army, the DAC has approved the procurement of a 1,350 HP engine to upgrade the current 1,000 HP engine used in T-90 tanks. This enhancement is expected to improve battlefield mobility, particularly in high-altitude areas, by increasing the power-to-weight ratio of these tanks.

For the Indian Navy, the DAC has cleared the procurement of Varunastra torpedoes, an indigenously developed ship-launched anti-submarine torpedo by the Naval Science & Technological Laboratory. The induction of additional units will strengthen the navy's ability to counter underwater threats.

For the Indian Air Force, approval has been given for the procurement of airborne early-warning-and-control aircraft systems. 

Recognising the need for modernisation amid evolving global security challenges, the Union Budget 2025–26 allocated Rs 1.8 lakh crore under the capital outlay for defence services. This marks a 4.65% increase over the previous year’s allocation.

Of this, Rs 1.49 lakh crore has been earmarked for capital acquisition, commonly referred to as the modernisation budget of the armed forces. The remaining Rs 31,277.2 crore will be directed towards capital expenditure on research and development as well as infrastructure development across the country. 

The Ministry of Defence has received the highest budget allocation among all ministries, with Rs 6.81 lakh crore allocated for the 2025–26. This represents a 9.53% increase from the previous year's allocation of Rs 6.21 lakh crore.