Jammu & Kashmir Administrative Services (JKPSC)

• 07 Sep 2024

Major Defence Procurement Approval

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).