DAC clears ₹1.10 lakh crore defence package with 98 percent indigenization mandate

Policy Framework and Tri-Service Procurement Scale

The Defence Acquisition Council, chaired by Defence Minister Rajnath Singh, formally granted Acceptance of Necessity for a comprehensive series of capital acquisition proposals valued at approximately ₹1.10 lakh crore on September 7, 2026. This administrative milestone represents one of the largest single-session procurement clearances sanctioned for the Indian Armed Forces in recent years. Within the governance framework of the Defence Acquisition Procedure, an Acceptance of Necessity serves as the foundational regulatory authorization. It empowers the service headquarters to finalize operational requirements, publish detailed requests for proposal, evaluate industrial bids, and initiate technical field trials ahead of contract signature.

Beyond the total monetary magnitude of the package, the primary strategic significance rests on the Ministry of Defence setting a mandatory requirement that roughly 98 percent of the approved procurement value will be sourced directly from domestic industry. This structural mandate reflects a decisive effort to transition from foreign defense procurement toward complete technological self-reliance under the Make in India initiative. By directing capital funds toward domestic prime integrators, public sector defense undertakings, and micro, small, and medium enterprises, the decision establishes multi-year manufacturing and engineering opportunities across land, maritime, and aerospace sectors.

Land System Innovations: CBRN Vehicles, Mobility, and Bridging

The capital clearances approved for the Indian Army address crucial requirements in tactical mobility, battlefield engineering, situational awareness, and force survivability across diverse operational theatres. A key highlight of the land systems package is the procurement of Chemical, Biological, Radiological, and Nuclear reconnaissance vehicles. These specialized armored platforms, built on wheeled and tracked chassis, are equipped with sophisticated automated sensor suites designed to detect, identify, monitor, and mark areas contaminated by hazardous industrial chemicals or chemical warfare agents. Integrated air-sampling systems, localized overpressure filtration units, and real-time environmental telemetry allow these vehicles to map hazardous zones without exposing crew members to deadly contaminants.

To ensure rapid troop movement and heavy armor maneuverability across rugged border terrains and water obstacles, the council approved high-mobility vehicles and Sarvatra mobile bridging systems. The Sarvatra system utilizes multi-span, hydraulically actuated scissor bridges mounted on high-mobility truck chassis to quickly span rivers and ravines, establishing composite crossings for fighting formations. Complementing these bridging platforms are self-propelled mechanical mine layers and trawl tanks. Mechanical mine-laying systems allow combat engineering units to execute rapid, high-density minefield placement along designated access corridors, while tank-mounted trawls mechanically clear or detonate buried explosive hazards to create safe lanes through contested territory. In addition, the procurement includes additional batches of the Advanced Light Helicopter to support air assault, logistics support, and casualty evacuation in high-altitude environments.

Maritime Propulsion and Radar Modernization

The maritime component of the clearance marks an essential shift in naval engineering, led by the approval for the design, development, and eventual procurement of indigenous Marine Gas Turbines for warship propulsion. Frontline surface combatants of the Indian Navy, including destroyers and stealth frigates, have historically depended on imported marine gas turbine engines sourced from overseas specialists or manufactured locally under foreign licensing agreements. Geopolitical shifts and international supply chain vulnerabilities have emphasized the urgent need to establish domestic capability in marine gas turbine design and production.

Sanctioned under the Make-I category of the Defence Acquisition Procedure, the marine gas turbine project aims to build indigenous intellectual property in high-power thermal and mechanical engineering. Designing naval gas turbines capable of producing power in the 24 to 28 megawatt range requires mastery over advanced high-temperature metallurgy, single-crystal turbine blade casting, complex combustor dynamics, and digital engine control units. These propulsion units must operate under extreme thermal stress, rotational forces, and corrosive marine conditions. Alongside naval propulsion, the council approved the acquisition of Arudhra four-dimensional multi-function phased-array radars. These advanced radar systems, developed by domestic defense research laboratories, will replace legacy air route surveillance radars at naval air stations, providing enhanced air traffic control, long-range tracking, and perimeter defence.

Electronic Warfare and Aerial Readiness Upgrades

For the Indian Air Force and joint electronic warfare capabilities, the approval package includes ground-based multi-purpose jammers designed to counter adversary radar networks, airborne surveillance assets, and guided threat systems. Operating across broad frequency bands, these ground-based systems deliver high-power radio-frequency jamming to neutralize hostile sensor nodes and disrupt tracking signals, protecting strategic installations and field deployments from precision strikes.

Alongside combat hardware, the package includes tri-service security modernization through the Defence Forces Secure Access Card system. Replacing legacy paper-based entry passes, this system introduces Radio Frequency Identification smart cards connected to an integrated, encrypted identity database. The system enforces secure credential verification, automated access logging, and personnel tracking across military headquarters, airfields, naval bases, and research facilities nationwide. Furthermore, comprehensive upgrade programs were approved for active fighter, transport, and helicopter fleets, enhancing avionics suites, structural integrity, and weapons integration to maintain operational readiness across the services.

Validation and Test Infrastructure Requirements

Achieving a 98 percent indigenous content target across complex mechanical, propulsion, and electronic platforms requires a parallel expansion of domestic testing infrastructure. High-performance military systems such as marine gas turbines, hydraulic mine-laying mechanisms, and mobile bridging equipment cannot be fielded without extensive ground qualification. Every subsystem must undergo rigorous testing under simulated operational loads, thermal cycles, high-pressure environments, and severe mechanical vibration before entering production or sea trials.

Engineers and defense manufacturers building these advanced systems require specialized ground support equipment, automated test benches, high-pressure gas simulation systems, and heavy-duty hydraulic test rigs to verify performance standards against strict military specifications. As Indian defense manufacturers take on larger engineering responsibilities for naval propulsion, armored platforms, and aviation systems, turnkey testing infrastructure becomes indispensable to validating reliability and safety. Neometrix Defence Limited supports this national indigenization push by designing and manufacturing specialized test benches, ground support equipment, hydraulic test rigs, and turnkey testing systems that allow domestic engineering enterprises to qualify defense hardware locally.