NEW DELHI: The Defence Acquisition Council (DAC) has delegated powers to armed forces for progressing urgent capital acquisition up to Rs 300 crore to meet immediate operational requirements of the armed forces.
The decision was taken at the DAC meeting chaired by the Defence Minister Rajnath Singh in New Delhi on Wednesday. An official statement said the decision was taken considering the security environment prevailing along the Northern Borders and the need to strengthen the Armed Forces.
The statement further stated that the decision will shrink the procurement timelines and ensure placement of orders within six months and commencement of deliveries within one year.
Earlier, this month the DAC had accorded approval for capital acquisitions of various platforms and equipment worth Rs 38,900 crore approximately. Focused on indigenous design and development, these approvals included acquisitions amounting to Rs 31,130 crore from the Indian industry.
Also, addressing the long felt need of the Indian Air Force to increase its fighter squadrons, the DAC had also approved the proposal for procurement of 21 MIG-29 fighter aircraft and upgrade of existing 59 Mig-29 aircraft and procurement of 12 additional Su-30 MKI fighters.
While the MIG 29 procurement from Russia is estimated to cost Rs 7,418 crore, the Su-30 MKI will be procured from HAL at an estimated cost of Rs 10,730 crore.