Defence Acquisition Council Approves Weapons, Systems Worth ₹54,000 Crores

The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, on Thursday (March 20, 2025) approved guidelines aimed at shortening the timelines of the defence procurement process, alongside granting preliminary approvals for procurement proposals worth ₹54,000 crore.
This decision follows the Cabinet Committee on Security's (CCS) final approval for the procurement of 307 indigenously designed and developed artillery guns at a cost of ₹7,000 crore.
As part of the MoD's initiative to mark 2025 as the "Year of Reforms," the DAC introduced guidelines to reduce procurement timelines by 10-15%, making the process faster and more efficient. According to defence sources, this reduction is achieved by eliminating delays at various stages through data-driven adjustments. These measures are set to be implemented immediately.
Among the approvals granted, the DAC accorded Acceptance of Necessity (AoN) for eight proposals worth over ₹54,000 crore. Notable among these is the procurement of 1350 HP engines to upgrade the Army’s T-90 tanks from their current 1000 HP engines. This enhancement aims to improve the tanks' battlefield mobility, particularly in high-altitude areas, by increasing their power-to-weight ratio.
For the Indian Air Force, AoN was approved for acquiring Airborne Early Warning & Control (AEW&C) Aircraft systems. These systems will complement the existing three Netra AEW&C airborne radar systems mounted on Embraer aircraft currently in service.
Among these initiatives is the acquisition of additional Varunastra torpedoes, which are advanced ship-launched anti-submarine weapons developed by the Naval Science and Technological Laboratory (NSTL). The decision to procure these torpedoes is intended to bolster the Indian Navy's ability to counter submarine threats from adversaries, thereby enhancing maritime security.
The Varunastra torpedo is notable for its autonomous operation and advanced design, allowing it to be effective in both shallow and deep waters. It features a powerful electric propulsion system and can reach speeds exceeding 40 knots while carrying a conventional warhead of up to 250 kg. The induction of more Varunastra torpedoes into the Navy's arsenal is expected to significantly improve its anti-submarine warfare capabilities.
In addition to the Varunastra, the DAC also approved the procurement of 307 Advanced Towed Artillery Gun Systems (ATAGS) for the Indian Army. This artillery system, designed in collaboration with Bharat Forge and Tata Group, is expected to enhance the Army's firepower significantly. Bharat Forge emerged as the lowest bidder for this contract, which may be split between the two companies if TATA Group can match their pricing.
These decisions reflect a broader initiative by the Ministry of Defence to streamline procurement processes as part of celebrating 2025 as the 'Year of Reforms.' The DAC aims to make acquisitions faster and more efficient, reducing delays that have historically plagued military procurements in India.
The recent approval of a ₹7,000 crore deal for the Advanced Towed Artillery Gun System (ATAGS) marks a significant stride towards enhancing India's defence capabilities and reducing foreign dependency in military equipment.
This initiative, led by the Cabinet Committee on Security (CCS) under Prime Minister Narendra Modi, involves the acquisition of 307 indigenously designed 155mm artillery guns, which are expected to replace outdated models currently in service. The ATAGS boasts a range of up to 48 kilometres and is anticipated to bolster the operational readiness of the Indian Army along its borders with China and Pakistan.
One of the most notable aspects of the ATAGS is its high level of indigenous content, with over 65% of its components sourced domestically. Key subsystems such as the barrel, muzzle brake, breech mechanism, firing and recoil system, and ammunition handling mechanism are all produced within India. This development not only strengthens the domestic defence industry but also significantly mitigates reliance on foreign technology and imports.
Additionally, the project is expected to generate substantial employment opportunities, creating an estimated 20 lakh man-days across various sectors. This aligns with India's broader goal of self-reliance in defence manufacturing and contributes positively to the country's defence export portfolio.
The ATAGS project, developed by the Defence Research and Development Organisation (DRDO) in collaboration with Bharat Forge and TATA Advanced Systems, exemplifies India's commitment to advancing its indigenous military capabilities while fostering economic growth through local manufacturing.
Agencies