Rs 2.38 Lakh Cr Defence Deals Approved

New Delhi: The Defence Acquisition Council, chaired by Defence Minister Rajnath Singh, on Friday accorded preliminary approval to defence procurement proposals worth about Rs 2.38 lakh crore, including acquisition of additional S-400 air defence systems, Dhanush artillery guns and aerial surveillance systems.

For the Indian Air Force, Acceptance of Necessity (AoN) was granted for procurement of medium transport aircraft, S-400 long-range surface-to-air missile systems, remotely piloted strike aircraft and overhaul of Su-30 aero engine aggregates. Officials said the transport aircraft will replace ageing AN-32 and IL-76 fleets to meet strategic and operational airlift requirements.

Approval for additional S-400 systems follows their operational performance during Operation Sindoor, where they were reported to have engaged aerial targets at long range and curtailed adversary air activity.

India had signed a $5.43 billion agreement with Russia in 2018 for five S-400 squadrons, of which three have been delivered. Delivery of the remaining systems has been delayed due to the Russia-Ukraine conflict. Defence sources indicated that pending deliveries are expected by mid and end of the current year.

For the Indian Army, AoN was accorded for the Air Defence Tracked System, armoured piercing tank ammunition, high-capacity radio relay systems, Dhanush gun system and runway-independent aerial surveillance systems. These are intended to strengthen air defence, communication and artillery capabilities.

Officials said 55 proposals worth Rs 6.73 lakh crore have received AoN in 2025–26 so far, while capital procurement contracts worth Rs 2.28 lakh crore have been signed during the current financial year.

Separately, the defence ministry signed contracts worth Rs 858 crore for procurement of Tunguska air defence missile systems and inspection of P-8I long-range maritime reconnaissance aircraft. The Rs 445 crore Tunguska contract for the Army was signed with Russia’s JSC Rosoboronexport in the presence of Defence Secretary Rajesh Kumar Singh. Officials said the systems will enhance India’s multi-layered air defence capability and strengthen defence cooperation with Russia.