DAC clears Rs 2.38 lakh crore defence deals including S-400 and Su-30 engines in major push

DAC has approved defence proposals worth ₹2.38 lakh crore to strengthen India’s military across land, air and coastal domains, enhancing air defence, surveillance, mobility and combat readiness.

Post Published By: Ayushi Bisht

Updated : 27 March 2026, 6:48 PM IST

The approvals are aimed at strengthening India’s overall military capability

New Delhi: The Defence Acquisition Council, chaired by Defence Minister Rajnath Singh, has granted Acceptance of Necessity (AoN) for defence procurement proposals worth approximately ₹2.38 lakh crore.

The approvals are aimed at strengthening India’s overall military capability and enhancing operational preparedness across the armed forces.

Army to receive advanced systems

For the Indian Army, approvals have been granted for the Air Defence Tracked System, Armoured Piercing Tank Ammunition, High Capacity Radio Relay, Dhanush Gun System and Runway Independent Aerial Surveillance System.

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These systems are expected to significantly improve air defence control and reporting, ensure reliable and secure communication networks, and enhance artillery performance in terms of range, lethality and accuracy. The surveillance systems will further boost situational awareness for ground units across varied terrains.

Air Force focus on mobility and combat strength

The Indian Air Force will procure Medium Transport Aircraft, the S-400 missile system, Remotely Piloted Strike Aircraft and undertake overhaul of Su-30 aero engine aggregates.

The new transport aircraft will replace ageing AN-32 and IL-76 fleets, strengthening strategic and tactical airlift capabilities. The S-400 system will enhance long-range air defence against potential threats targeting key assets.

Additionally, remotely piloted strike aircraft will enable offensive and coordinated air operations while supporting intelligence, surveillance and reconnaissance missions. The overhaul of Su-30 engines will extend the service life of the aircraft and ensure continued operational readiness.

Coast Guard to boost coastal operations

For the Indian Coast Guard, AoN has been granted for Heavy Duty Air Cushion Vehicles. These platforms will support high-speed coastal patrol, search and rescue operations, reconnaissance and logistics tasks, enhancing maritime security.

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Record procurement figures in FY 2025-26

The Defence Ministry stated that in FY 2025-26, AoN has been accorded for 55 proposals worth ₹6.73 lakh crore.

Additionally, capital procurement contracts worth ₹2.28 lakh crore have been signed for 503 proposals so far this fiscal, marking the highest-ever value recorded in a single financial year.