DAC Clears Rs 2.12 Lakh Crore Defence Deals
Why in News?
- On 26 October 2026, the Defence Acquisition Council chaired by Defence Minister Rajnath Singh granted Acceptance of Necessity for capital acquisition proposals worth about Rs 2.12 lakh crore, News On AIR and The Tribune reported.
- The approvals cover the Army, Navy and Air Force and include guns, helicopters, drones, air defence and a next-generation destroyer.
- The Ministry said nearly 82 per cent of the procurements will be sourced from Indian industry.
- Acceptance of Necessity is only the first step, and it is followed by requests for proposals, trials and contract negotiation.
Key Terminologies
- Defence Acquisition Council
- The Ministry of Defence's apex decision-making body for capital acquisition, chaired by the Defence Minister. It clears proposals in principle before purchase procedures begin.
- Acceptance of Necessity
- The in-principle approval that a proposed purchase is needed. It starts the procurement process, but it is not a contract.
- Counter-Unmanned Aerial System
- A system that detects and defeats hostile drones. The Tribune said it will improve tank survivability.
- VSHORADS
- Very short-range air defence systems are designed to engage small, fast aerial threats such as drones and low-flying aircraft at close range, which the Tribune described as new-generation threats.
- Kamikaze Drone
- A drone built to destroy itself on its target. The approval covers a long-range kamikaze drone system for the Army.
Key Issues
- Approval Is Not Delivery: Acceptance of Necessity starts a long process of proposals, trials and negotiations. Delays between approval and contract are common, so capability reaches troops years later.
- Indigenous Share: About 82 per cent of the procurements are to come from Indian industry. The test is whether Indian firms can deliver on time and to specification.
- Drone and Counter-Drone Race: The approvals include surveillance drones, strike drones and counter-drone systems. The Tribune noted that drones played a significant role in Operation Sindoor in May last year, which shows the pace of change.
- Naval Threats: The Active Offboard Decoy System is meant to strengthen defence against modern anti-ship missiles, which reflects a growing missile threat at sea.
- Cost and Sustainment: Large purchases bring long-term costs for spares, training and upgrades that are not part of the headline figure.
Key Implications
Positive/Pros/Merits
- Broad Capability Boost: The approvals cover mobility, firepower, air defence, surveillance and weather radar across all three services.
- Support to Indian Industry: With about 82 per cent from domestic sources, the orders can strengthen manufacturers and the supply chain.
- Modern Warfare Needs: Drones, counter-drone systems and very short-range air defence respond to new-generation aerial threats.
- Naval Self-Reliance: A next-generation destroyer of more than 10,000 tonnes is to be designed and built indigenously, which builds shipbuilding and design skills.
Negative/Cons/Demerits
- Long Lead Times: Proposals, trials and negotiations can take years, so the benefit is distant.
- Budget Pressure: A total of Rs 2.12 lakh crore adds to future payment commitments.
- Technology Dependence: Indigenous systems may still rely on imported engines, sensors and electronics.
- Limited Detail: The reports reviewed give no quantities, unit costs or service-wise totals.
Key Initiatives
- Defence Acquisition Council Meeting, 26 October 2026: It approved proposals worth about Rs 2.12 lakh crore.
- Army Approvals: These include a self-propelled tracked gun system, light multi-role helicopters, high-mobility vehicles, a very short-range air defence system (VSHORADS), surveillance and strike UAVs, a counter-drone system and a long-range kamikaze drone system.
- Navy Approvals: These include the Active Offboard Decoy System and a next-generation destroyer of more than 10,000 tonnes to be built indigenously.
- Air Force Approvals: These include air defence systems, helicopters and a mobile X-band Doppler weather radar for forward areas.
- Indigenisation: Nearly 82 per cent of the procurements are to be made from Indian industry.
The Ministry of Defence runs the Defence Acquisition Council process, and the Army, Navy and Air Force will move to proposals and trials next. The reports reviewed do not give delivery dates, quantities or the firms likely to be chosen, so the next signals to watch are the issue of requests for proposals and the start of trials.
Director's Perspective
Way Forward
- Set and publish time limits from Acceptance of Necessity to contract, so that approvals turn into equipment quickly.
- Track the indigenous share at each stage, from design to delivery, so that the 82 per cent figure is real.
- Combine drone and counter-drone work with testing of Indian firms, so that new systems are proven before large orders.
The approvals show a push to modernise all three services with a high share of Indian-made equipment. The strengths are broad coverage, the focus on drones and air defence, and an indigenous design goal for the destroyer, while the weaknesses are long lead times, cost commitments and thin public detail. In a Mains answer, credit the focus on self-reliance, then conclude that results depend on speedy procurement, tested technology and Indian firms' ability to deliver.
GS Relevance
Frequently Asked Questions
What did the Defence Acquisition Council approve on 26 October 2026?
The Defence Acquisition Council, chaired by Defence Minister Rajnath Singh, granted Acceptance of Necessity for capital acquisition proposals worth about Rs 2.12 lakh crore. They cover the Army, Navy and Air Force, and nearly 82 per cent of the procurements will be sourced from Indian industry.
What does Acceptance of Necessity mean?
Acceptance of Necessity is the in-principle approval that a proposed purchase is needed. It is the first step and is followed by requests for proposals, trials and contract negotiations before final contracts are signed, The Tribune reported.
Which systems were approved for the Navy and Air Force?
For the Navy, the Council approved the Active Offboard Decoy System and a next-generation destroyer of more than 10,000 tonnes to be built indigenously. For the Air Force, it approved air defence systems, helicopters and a mobile X-band Doppler weather radar.
PYQ Practice — Statement Analysis
1 The Defence Acquisition Council is chaired by the Defence Minister.
Rajnath Singh chaired the meeting on 26 October 2026.
2 Acceptance of Necessity is the final contract for a defence purchase.
It is only the first step, followed by proposals, trials and negotiations.
3 Nearly 82 per cent of the approved procurements will come from Indian industry.
The Ministry of Defence stated this figure.