Capital procurement proposals worth Rs 2.71 Lakh Cr for Armed Forces in FY 2022-23: MoD

The Indian Government has accorded Acceptance of Necessity (AoN) to 163 capital procurement proposals worth Rs 2,46,989.38 Crores approximately, under various categories of capital procurement which promote domestic manufacturing as per DAP-2020.

According to the Indian Ministry of Defence (MoD) data, the Defence Acquisition Council (DAC) in the last 12 months has accorded its Acceptance of Necessity (AoN) for defence capital procurement proposals / projects worth more than Rs 2.71 Lakh Crores.

In a big push for self-reliance in the defence manufacturing sector, 99% of this procurement will be sourced from India’s Defence Industrial Base (DIB) / Indian industries. Some of the procurement that were given approval includes of:

  • Indigenous BrahMos missiles
  • Shakti Electronic Warfare (EW) systems
  • Medium Speed Marine Diesel Engine
  • 155mm/52 Caliber Advanced Towed Artillery Gun System (ATAGS)
  • High Mobility Vehicles (HMVs)
  • Futuristic Infantry Combat Vehicle (FICV)
  • Gun Towing Vehicles (GTVs)
  • Advance Light Helicopters (ALH) MK-III
  • Long Range Stand-Off Weapon (LRSOW)
  • HELINA Anti-Tank Guided Missile
  • Next Generation Offshore Patrol Vessels

Under India’s defence procurement rules, the AoN by the council is the first in a series of steps towards buying military hardware. Subsequently, after which the Indian Ministry of Defence (MoD) moves forward by issuing Request for Proposals (RFP) or Tenders.

After the RFP, the next steps include vendors responding to it with techno-commercial offers, opening and evaluation of technical offers, extensive trials, staff evaluation, opening of commercial offers that are technically compliant with the RFP, and finally, the contract being awarded.