DAC clears ₹2.38 lakh crore defence proposals; focus on air defence, transport, sustainment

The defence acquisition council (DAC) on Friday cleared proposals worth ₹2.38 lakh crore, covering a range of requirements across the army, air force and coast guard, in one of the largest single-day approvals in recent years.

The approvals — granted under the acceptance of necessity (AoN) route — include air defence systems, transport aircraft, artillery, surveillance platforms and communication systems.

For the army, clearances include an air defence tracked system, high-capacity radio relay, Dhanush artillery guns, runway-independent aerial surveillance systems and armour-piercing ammunition.

For the air force, the DAC approved procurement of medium transport aircraft to replace the ageing AN-32 and IL-76 fleets, additional S-400 long-range air defence systems, remotely piloted strike aircraft and overhaul of Su-30 engine aggregates.

The coast guard will procure heavy-duty air cushion vehicles for coastal patrol, search and rescue and logistics operations.

Scale and pipeline

The ₹2.38 lakh crore approvals come close to the government’s annual capital outlay for defence modernisation, stressing the scale of the current procurement pipeline.

In FY26 so far, AoNs worth ₹6.73 lakh crore have been accorded across 55 proposals, according to official data. Capital contracts signed during the year stand at ₹2.28 lakh crore, indicating a continued gap between approvals and actual contracting.

The latest approvals point to three areas of focus:

• Air defence: Expansion of layered systems, including additional S-400 units and Army-level tracking systems

• Mobility: Replacement of legacy transport aircraft to strengthen airlift capability

• Sustainment: Engine overhaul and ammunition replenishment

India’s defence budget for 2026-27 has earmarked over ₹2 lakh crore for capital expenditure, with a continued push on modernisation alongside constraints from committed revenue spending.