In a significant move to bolster India's military capabilities, the Defence Acquisition Council (DAC) on Monday, December 30, 2025, granted initial approval for capital acquisitions worth approximately Rs 79,000 crore. The Acceptance of Necessity (AoN) paves the way for the procurement of a wide array of indigenous and foreign-origin platforms and weapon systems for the Army, Navy, and Air Force.
Key Approvals for Army and Air Force
Chaired by Defence Minister Rajnath Singh, the DAC cleared several critical proposals. For the Indian Army, the green light was given for the Loiter Munition System for Artillery Regiments, designed for precision strikes on tactical targets. The Army will also get Low Level Light Weight Radars to detect and track small, low-flying drones, a capability deemed crucial after incidents like Operation Sindoor in May 2025.
Other approvals for the land force include Long Range Guided Rocket Ammunition for the Pinaka Multiple Launch Rocket System (MRLS) to enhance its range and accuracy, and an upgraded Integrated Drone Detection and Interdiction System Mk-II to protect vital assets.
For the Indian Air Force, the DAC approved the procurement of the indigenous Astra Mk-II Beyond Visual Range Air-to-Air Missiles, which have an enhanced range of over 200 km. This missile will significantly boost the strike capability of fighter jets like the Sukhoi-30 and LCA Tejas. The IAF will also acquire SPICE-1000 Long Range Guidance Kits from Israel, along with Automatic Take-off Landing Recording Systems and Full Mission Simulators.
Naval Enhancements and Leasing Strategy
The Indian Navy received AoN for the procurement of Bollard Pull Tugs and High Frequency Software Defined Radios (HF SDR) Manpack. In a notable decision, the council also approved the leasing of High Altitude Long Range (HALE) Remotely Piloted Aircraft Systems (RPAS).
The Navy currently operates two leased Sea Guardian drones, and this approval is to extend that lease period. This move comes alongside a larger deal finalized last year, where India and the United States inked a $3.5 billion (over Rs 28,000 crore) agreement to procure 31 MQ-9B HALE RPAS.
Strategic Implications and Procurement Process
The DAC is the primary body for clearing major capital acquisitions in defence, and the AoN is the first step in the lengthy procurement process. It is important to note that an AoN does not guarantee a final contract, but it initiates the tendering and negotiation phases.
This massive approval underscores the government's focus on modernizing the armed forces with a mix of cutting-edge imported technology and increasingly potent indigenous systems. The emphasis on drone defence systems and long-range precision weapons reflects the evolving nature of security threats and the need for robust deterrence along India's borders.
The cleared proposals, once converted into contracts, will enhance the operational readiness of all three services, providing them with advanced tools for surveillance, precision strikes, and air defence in the modern battlefield.