Major Defence Procurement Approval | 07 Sep 2024
Why in News?
Recently, India’s Defence Council approved military hardware procurement worth Rs 1.45 lakh crore, emphasizing indigenous suppliers for modernizing the forces.
Key Points
- Indigenous Procurement Focus: 99% of the funds will be spent on indigenous suppliers.
- Major Approvals:
- 1,770 Future-Ready Combat Vehicles (FRCVs) for the Indian Army
- Construction of seven additional Project-17B stealth frigates for the navy.
- Acquisition of 26 Rafale-M fighters for INS Vikrant
- Additional Procurements:
- Air defence fire control radars.
- Equipment for cross-country mobility, such as forward repair team (tracked) vehicles.
- Upgraded capabilities for the Indian Coast Guard, including Dornier-228 aircraft and next-generation patrol vessels.
- Procurement Categories:
- Indian-IDDM (Indigenously Designed, Developed, and Manufactured)
- Buy (Indian): Includes products with 50% or 60% indigenous content, depending on design and development.
- Self-Reliance Measures:
- Phased bans on imports of weapons and subsystems.
- Increased FDI limit from 49% to 74%.
- Separate budget allocation for locally made hardware.
- 2024-25 Defence Budget:
- Total allocation of Rs 6.22 lakh crore.
- Capital expenditure of Rs 1.72 lakh crore, with Rs 1.05 lakh crore earmarked for domestic procurement.
Defence Acquisition Council
- The DAC is the highest decision-making body in the Defence Ministry for deciding on new policies and capital acquisitions for the three services (Army, Navy and Air Force) and the Indian Coast Guard.
- The Minister of Defence is the Chairman of the Council.
- It was formed, after the Group of Ministers recommendations on 'Reforming the National Security System', in 2001, post Kargil War (1999).