Union Defence Minister Rajnath Singh.
| Photo Credit: K. MURALI KUMAR
The Defence Acquisition Council (DAC) on Thursday (March 20, 2025) approved guidelines to shorten the timelines of the defence procurement process along with preliminary approvals for procurement proposals worth ₹54,000 crore, a day after the Cabinet Committee on Security (CCS) gave final approval for the procurement of 307 indigenously designed and developed artillery guns at a cost of ₹7,000 crore.
“As a part of celebrating 2025 as ‘Year of Reforms’ in the Ministry of Defence, the DAC also approved the guidelines for reducing the timelines at various stages of the capital acquisition process to make it faster, more effective and efficient,” a Ministry statement said.
The new guidelines will reduce the timelines of the procurement process by 10-15%, a defence source said, adding that it essentially cuts down few weeks off at various steps of the process based on an exercise of data-crunching. These measures should be implemented with immediate effect, sources added.
The DAC, chaired by Defence Minister Rajnath Singh, also accorded Acceptance of Necessity (AoN), the first step of the procurement process, for eight proposals worth over ₹54,000 crore. These include procurement of 1350 HP engines to upgrade the present 1000 HP Engine on the Army’s T-90 tanks. This will enhance the battlefield mobility of these tanks, especially in high-altitude areas, by increasing the power to weight ratio, the statement said.
For the Indian Air Force, AoN was accorded for the procurement of Airborne Early Warning & Control (AEW&C) Aircraft systems. These are the next set of the three Netra AEW&C airborne radar systems mounted on Embraer aircraft in service.
Varunastra torpedoes
For the Navy, the DAC gave AoN for the procurement of Varunastra torpedoes (combat) which are ship-launched anti-submarine torpedo developed by Naval Science and Technological Laboratory. “Induction of additional quantities of this torpedo would enhance the Navy’s capability against adversaries’ submarine threats,” the statement added.
The CCS which met on Wednesday cleared the way for the procurement of 307 ATAGS, a 155mm, 52 calibre heavy artillery gun, that was indigenously designed and developed by Armament Research and Development Establishment (ARDE), the Pune-based laboratory of Defence Research and Development Organisation (DRDO), in partnership with Bharat Forge and Tata Group.
Bharat Forge emerged the lowest bidder in the deal and the contract is likely to be split 60:40 if Tata Group can match the price of the L1.
Reduced foreign dependency
Officials underscored the importance of the deal noting this was the country’s first indigenous 155mm artillery gun and over 65% of its components are sourced domestically, including key subsystems such as the barrel, muzzle brake, breech mechanism, firing and recoil system, and ammunition handling mechanism. “This development not only strengthens India’s defence industry but also reduces dependency on foreign imports,” a government source said.
One of the key advantages of ATAGS is its minimal reliance on foreign components, the source stated. “Critical subsystems such as the navigation system, muzzle velocity radar, and sensors are designed and sourced indigenously, significantly reducing India’s dependence on foreign technology and imports.”
The project is also expected to generate substantial employment, with an estimated 20 lakh man-days created across various industries, sources said, while also adding to the portfolio of the country’s defence exports.
Published – March 20, 2025 08:54 pm IST