DAC clears Rs 2.38 lakh crore defence deals including S-400 systems and Su-30 engine overhaul

India approves ₹2.38 lakh crore defence deals covering air defence systems, transport aircraft and army equipment

March 27, 2026

India clears massive defence procurement proposals for armed forces

Defence Acquisition Council approves major procurement proposals to modernise the armed forces

The Defence Acquisition Council (DAC) on Friday cleared defence procurement proposals worth ₹2.38 lakh crore, aimed at strengthening and modernising the capabilities of the Indian Armed Forces, sources said.

The approvals came during a high-level meeting chaired by Defence Minister Rajnath Singh.

For the Indian Air Force (IAF), the DAC cleared proposals for the procurement of S-400 long-range surface-to-air missile systems, overhaul of Sukhoi Su-30 aero engine aggregates, and induction of medium transport aircraft to replace ageing AN-32 and IL-76 transport fleets.

Sources said the move is intended to enhance the IAF’s strategic, tactical and operational airlift capabilities.

“The S-400 system will counter enemy long-range air vectors targeting vital areas, while the Remotely Piloted Strike Aircraft will enable undertaking Offensive Counter and Coordinated Air Operations, also providing stealth Intelligence, Surveillance and Recognition activities,” sources said.

They added that overhauling Su-30 engines and their aggregates will increase the service life of the aircraft and help meet the operational requirements of the Air Force.

Approvals for Army and Coast Guard

For the Indian Army, the DAC approved procurement of air defence tracked systems, armour-piercing tank ammunition, high-capacity radio relay systems, the Dhanush gun system, and runway-independent aerial surveillance systems.

Meanwhile, the Indian Coast Guard received Acceptance of Necessity (AoN) for a heavy-duty cushion vehicle (hovercraft) that will be used for coastal patrolling, reconnaissance, search and rescue operations, and logistical support.

Record defence approvals

According to sources, the DAC during financial year 2025–26 has granted AoN for 55 proposals worth ₹6.73 lakh crore.

“Moreover, capital procurement contracts have been signed for 503 proposals amounting to ₹2.28 lakh crore in the current fiscal year. Both the quantum of AoN given and capital contracts signed, so far, has been the highest in any given Financial Year,” sources added.

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