Nod for Rs2.23 Tn Defence Plans

98% to be sourced from domestic industries in major boost to 'Aatmanirbharta' in defence; Medium Range Anti-Ship Missiles for surface platform of Indian Navy accorded approval; Acquisition of Towed Gun System cleared to replace Indian Field Gun; Procurement of Light Combat Helicopters & Light Combat Aircraft Mk 1A from HAL gets a nod

Mahe, Malvan and Mangrol, the first three ships of 08 x ASW Shallow Water Craft (CSL) project being built by CSL, Kochi for the Indian Navy, were launched on 30 Nov 23 at CSL, Kochi

FinTech BizNews Service   

Mumbai, December 1, 2023: The Defence Acquisition Council (DAC), under the chairmanship of Raksha Mantri Rajnath Singh on November 30, 2023, accorded approval in respect of Acceptance of Necessity (AoNs) for various Capital Acquisition Proposals amounting to Rs 2.23 lakh crore, of which, acquisition worth Rs 2.20 lakh crore (98% of total AoN amount) will be sourced from domestic industries. This will give a substantial boost to the Indian Defence Industry towards the aim of achieving the goal of ‘Aatmanirbharta’. 

The DAC has accorded the AoN for procurement of two types of Anti-tank Munitions namely, Area Denial Munition (ADM) Type - 2 and Type-3, which are capable of neutralising Tanks and Armoured personnel carriers and enemy personnel. To replace the Indian Field Gun (IFG), which has completed its service life, AoN for procurement of state-of-the-art Towed Gun System (TGS) has been granted which will become a mainstay of Artillery forces of Indian Army. The AoN was also accorded for 155 mm Nubless projectile for use in 155 mm Artillery guns which will enhance lethality and safety of the projectiles. All these equipment of the Indian Army will be procured under Buy (Indian-IDDM) category.

The AoN for procurement and integration of Automatic Target Tracker (ATT) and Digital Basaltic Computer (DBC) for T-90 Tanks under Buy (India) category have also been accorded which will help in maintaining combative edge of T-90 tanks over adversary platforms. The AoN for procurement of Medium Range Anti-Ship Missiles (MRAShM) for surface platform of Indian Navy under Buy (Indian-IDDM) category has also been accorded. The MRAShM is envisaged as a lightweight Surface-to-Surface Missile which will be a primary offensive weapon onboard Indian Naval Ships.

In addition, the DAC accorded AoNs for procurement of Light Combat Helicopter (LCH) for Indian Air Force (IAF) & Indian Army and Light Combat Aircraft (LCA) Mk 1A for IAF from Hindustan Aeronautics Limited (HAL) under Buy (Indian-IDDM) category. The AoNs have also been accorded by the DAC for upgradation of Su-30 MKI Aircraft indigenously from HAL. While procurement of these equipment will provide enormous strength to the IAF, acquisition from domestic defence industries will take the indigenous capability to a new height. It will also reduce dependability on foreign Original Equipment Manufacturers (OEMs) substantially.

Further to maximise indigenisation, the DAC has accorded approval for a major amendment in the Defence Acquisition Procedure (DAP) 2020. It has been decided that henceforth, in all categories of procurement cases, minimum 50% of indigenous content shall be in the form of material, components & software that are manufactured in India. For the purpose of calculation of Indigenous content, cost of Annual Maintenance Contract (AMC)/Comprehensive Maintenance Contract (CMC)/After Sale Service shall be excluded. Also, the DAC has taken decision to further encourage start-ups/MSMEs participation in the defence ecosystem. For all procurement cases with AoN cost upto Rs 300 crore, registered MSMEs and recognised start-ups will be considered for issue of Request for Proposal (RFP) without any stipulation of financial parameters, which can further be relaxed with approval of Defence Procurement Board (DPB) for AoN cost upto Rs 500 crore on case-to-case basis. 

In the meantime, Mahe, Malvan and Mangrol, the first three ships of 08 x ASW Shallow Water Craft (CSL) project being built by CSL, Kochi for the Indian Navy, were launched on 30 Nov 23 at CSL, Kochi. In keeping with maritime tradition, Mahe was launched by Mrs Anjali Bahl in the presence of VAdm Puneet Bahl, Commandant INA, Malvan was launched by Mrs Kangana Berry in the presence of VAdm Suraj Berry, C-in-C, and Mangrol was launched by Mrs Zarine Lord Singh in the presence of VAdm Sanjay J Singh, Vice Chief of Naval Staff. The ships were launched to the invocation from Atharva Veda. The Mahe class ASW Shallow Water Crafts have been named after ports of strategic importance along the coast of India, and will look to carry forward the glorious legacy of the erstwhile minesweepers which were their namesake.

The contract for building eight ASW SWC ships was signed between the Ministry of Defence and Cochin Shipyard Limited on 30 Apr 19. The Mahe class of ships will be equipped with indigenously developed, state-of-the-art underwater sensors, and are envisaged to undertake anti-submarine operations in coastal waters as well as Low Intensity Maritime Operations (LIMO) and Mine Laying Operations. The ASW SWC ships are 78 m long and displacement is approx 900 tons, with a maximum speed of 25 knots.

Simultaneous launch of three ships of the same class highlights our strides in indigenous shipbuilding, towards ‘Aatmanirbhar Bharat’. The first ship of the project is planned to be delivered in 2024. The ASW SWC ships will have over 80% indigenous content, thereby ensuring that large scale defence production is executed by Indian manufacturing units, generating employment and capability enhancement within the country. 

Third Ammunition Cum Torpedo Cum Missile (ACTCM) Barge, LSAM 17 (Yard 127) has been Delivered to Indian Navy on 30 Nov 23 in presence of Shri Shankar Mukharjee, INAS, AGM NAD (Karanja). With all major and auxiliary equipment/systems sourced from indigenous manufacturers, this Barge is proud flag bearer of “Make in India” initiative of Ministry of Defence.

Contract for construction and delivery of 11 x Ammunition Cum Torpedo Cum Missile (ACTCM) Barge was concluded with M/s Suryadipta Projects Pvt Ltd, Thane, an MSME, in consonance with “Aatmanirbhar Bharat” initiative of the Government of India. The MSME shipyard has successfully delivered two Barges. These Barges are being built under the classification rules of Indian Register of Shipping (IRS). The availability of ACTCM Barges will provide impetus to Operational commitments of IN by facilitating embarkation and disembarkation of articles / ammunition to IN Ships both alongside jetties and at outer harbours.

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