DAC’s Massive ₹1.45 Lakh Crore Approval for New Tanks, Advanced Combat Vehicles and Next-gen Boats

New Delhi, India - On September 3, 2024, the Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, granted Acceptance of Necessity (AoN) for ten major capital acquisition proposals amounting to ₹1,44,716 crore. This significant move underscores the Indian government's commitment to enhancing its defence capabilities, with 99% of the total cost being allocated for indigenous procurement under the Buy (Indian) and Buy (Indian-Indigenously Designed Developed and Manufactured) categories.  

The DAC's approval includes a major initiative for the modernization of the Indian Army’s tank fleet through the procurement of Future Ready Combat Vehicles (FRCVs). The FRCVs are envisioned to be state-of-the-art Main Battle Tanks, equipped with superior mobility, all-terrain capability, multilayered protection, precision, and lethal firepower, along with real-time situational awareness.  

Indigenous Solutions at the Forefront of Modernization  

In addition to the FRCVs, the DAC has cleared proposals for the procurement of Air Defence Fire Control Radars, designed to detect, track, and provide firing solutions for aerial targets. Also approved is the Forward Repair Team (Tracked), developed by Armoured Vehicles Nigam Limited. This equipment, which offers robust cross-country mobility, is intended for in-situ repairs during mechanized operations and will be authorized for use by both mechanized infantry battalions and armoured regiments.

The council has also approved three AoNs aimed at enhancing the capabilities of the Indian Coast Guard (ICG). These include the procurement of Dornier-228 aircraft, Next Generation Fast Patrol Vessels with high operational features in challenging weather conditions, and Next Generation Offshore Patrol Vessels equipped with advanced technology for extended long-range operations. These acquisitions are set to bolster the ICG’s capacity for maritime surveillance, patrolling, search and rescue operations, and disaster relief efforts.  

Honouring Legacy amid Strategic Upgrades  

During the meeting, Defence Minister Rajnath Singh paid tribute to the late Indian Coast Guard (ICG) DG Rakesh Pal, who passed away on August 18, 2024. Singh lauded DG Pal’s exceptional contributions to the growth and expansion of the ICG and extended condolences, prayers, and support to his family. All DAC members observed a moment of silence in respect of DG Rakesh Pal, whose legacy continues to inspire.  

The recent developments in the tank modernization program, including the trials of light tanks and system upgrades for T-72 tanks, have sparked significant discussions. The role of tanks in modern warfare once thought to be diminishing, is reaffirmed by these updates. The FRCVs will play a crucial role in ensuring the Indian Army’s operational readiness across various terrains and conflict scenarios.  

FRCV Program Advancing Army’s Armoured Capabilities

The FRCV program is a pivotal step in advancing the Indian Army’s armoured capabilities. Designed to replace the ageing T-72 fleet, which has been in service since 1979, the FRCV will offer enhanced operational effectiveness and adaptability. Although the initial T-72 fleet has been succeeded by T-90S tanks, the older T-72 models, even after upgrades, are becoming increasingly unsustainable.

The development of the FRCV has undergone several phases, initially planned under the Make Project and later evolving through different procurement models. The most recent RFI in 2024 and the expedited AoN reflect the strategic importance of this program. Once inducted, the FRCVs are expected to replace the remaining T-72 tanks, addressing obsolescence and operational challenges.  

GSPS 2032 framework and Modernization Fundamentals 

The modernization approach outlined in the DAC meeting is aligned with the GSPS 2032 framework, emphasizing a holistic and time-sensitive strategy. This includes prioritizing functional capabilities, balancing expansion with modernization, and optimizing legacy systems. The focus remains on enhancing lethality, survivability, agility, sustainability, connectivity, and affordability, with a strong emphasis on indigenous solutions and technology convergence.  

The planned upgrades and overhauls are designed to extend the life of existing tanks beyond 32 years, incorporating advanced subsystem and platform improvements. This strategic approach ensures that the Indian Army remains capable of achieving combat overmatch and operational excellence in the face of evolving threats.