DAC Clears Major Defence Procurement Proposals Worth Rs 52,000 Crore
The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, on July 3, 2026, approved a series of capital acquisition proposals totaling approximately Rs 52,000 crore. The approvals are aimed at enhancing the operational preparedness of the Indian Armed Forces while promoting self-reliance under the 'Make in India' initiative.
Key Systems Approved: Akash Tarang and MP-ATGM
Among the major projects cleared is the Akash Tarang, a next-generation air defence system designed to protect vital assets from aerial threats. The system is an upgrade over the existing Akash missile, featuring enhanced range and advanced electronic warfare capabilities. Additionally, the DAC gave the green light for the procurement of the Man-Portable Anti-Tank Guided Missile (MP-ATGM), which will provide infantry soldiers with a shoulder-fired, fire-and-forget capability to destroy enemy tanks and bunkers.
According to official sources, the MP-ATGM has been developed indigenously by the Defence Research and Development Organisation (DRDO). The missile is expected to significantly boost the anti-tank capabilities of the Indian Army, especially in high-altitude areas.
Focus on Indigenous Manufacturing and Private Sector Participation
The DAC also approved several other proposals that emphasize domestic production. These include the procurement of advanced artillery guns, electronic warfare suites, and military vehicles from Indian vendors. The council reiterated its commitment to achieving the government's target of Rs 1.75 lakh crore in defence exports by 2027.
Defence Minister Rajnath Singh stated, "These approvals will not only strengthen our defence capabilities but also provide a major boost to the domestic defence industry, creating employment opportunities and reducing import dependency."
Impact on Armed Forces and Strategic Autonomy
The procurement of Akash Tarang and MP-ATGM is expected to fill critical gaps in the air defence and anti-tank arsenals of the Indian military. With tensions along the northern borders and the need for rapid modernization, these systems will provide a technological edge. The DAC's decisions align with the government's strategic objective of achieving 'Atmanirbhar Bharat' (Self-Reliant India) in defence production.
The proposals will now move to the financial approval stage before contracts are signed with selected vendors. The entire process is expected to be completed within the next 12-18 months, with deliveries commencing shortly thereafter.
