Rs 46,000-crore boost to PM Modi's 'Make in India': DAC clears 'landmark' decisions for Army, Navy

In what can be termed as the biggest push to the 'Make In India' programme of Union government and the efforts at modernisation of armed forces, the Defence Acquisition Council (DAC), chaired by Defence Minister Nirmala Sitharaman on Saturday approved procurement for services amounting to around Rs. 46,000 crores. Take a look at the key decisions:

111 Utility helicopters for Indian Navy

The DAC has approved procurement of 111 Utility Helicopters for the Indian Navy at a cost of over Rs. 21,000 crores. This is the first of its kind project under the Ministry of Defence’s prestigious Strategic Partnership (SP) Model that aims at providing a significant fillip to the government’s ‘Make in India’ programme. 

What is SP Model?

The SP model envisages indigenous manufacturing of major defence platforms by an Indian Strategic Partner, who will collaborate with foreign OEM, acquire niche technologies and set up production facilities in the Country, said an official release. The SP model envisages a long-term vision of promoting India as a manufacturing hub for defence equipment leading to enhanced self-sufficiency and establishing an industrial and R&D ecosystem, capable of meeting the future requirements of the Armed Forces. "The contract when finalised, would result in a vibrant and wide-spread Defence industrial eco-system in the Indian Aviation Sector with the Private Industry and MSMEs as major stakeholders," said the release.

Modernisation of Armed forces

The DAC as approved several proposals amounting to approximately Rs. 24,879.16 crores, including for procurement of 150 numbers of Indigenously Designed and Developed 155 mm Advanced Towed Artillery Gun Systems for the Indian Army at an approximate cost of Rs 3,364.78 crores, for the modernisation of the Armed forces. 

"These guns have been indigenously designed and developed by DRDO and will be manufactured by production agencies, as nominated by DRDO. They are likely to be the mainstay of Artillery in the near future," the release said. 

"A nod to these major schemes will provide a fillip to the ‘Make in India’ push by the Government, will help create self-reliance in the Country in Defence manufacturing sector and has the potential of making the Defence Industry as a major engine of India’s economic growth," it added. 

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Multi-role helicopters

- The DAC has also granted approval for procurement of Anti-Submarine capable, 24 Multi-Role Helicopters to enhance the capability of Navy at sea. "Availability of MRH with the Navy would plug the existing capability gap," said the release. 

Vertically Launched Short Range Missile Systems

Lastly, the DAC has cleared the proposal to procure 14 Vertically Launched Short Range Missile Systems. Out of these, 10 systems will be indigenously developed. They will boost the self-defence capability of ships against Anti-Ship Missiles.