Defence★ Must Know

Defence Acquisition Council Clears Rs 52,000 Crore in Military Procurement Proposals

By TestNeeti Editorial TeamPublished Tuesday, 7 July 2026 3 min readSource: CA - DRDO TechArticle 13 of 21

The Defence Acquisition Council (DAC) accorded Acceptance of Necessity (AoN) — in-principle administrative approval — to acquisition proposals for the defence forces at an estimated cost of about Rs 52,000 crore ($5.5 billion). For the Indian Army, approvals covered the AKASH TARANG Anti-UAV Electronic Warfare System, Man Portable Anti-Tank Guided Missile (MPATGM) systems, the Medium Range Surface-to-Air Missile (MRSAM) system, Very Short Range Air Defence System (V-SHORADS), an Active Protection System for Tanks, and a Jet-Based Kamikaze Drone System. The MPATGM contract, worth about Rs 2,600 crore ($273 million), covers 5 simulators, 100 launchers and 2,300 missiles from Bharat Dynamics Limited (BDL). For the Indian Navy, approvals included the Multi-Influence Ground Mine (MIGM), Naval Shipborne Unmanned Aerial System (NSUAS), and a Land-Based Testing Facility (LBTF) for electric propulsion. For the Indian Air Force, it cleared the FW-HAPS and HAMMER guided glide bombs.

Key Facts & Details

9 points

1
The Defence Acquisition Council (DAC) granted Acceptance of Necessity (AoN) to proposals worth about Rs 52,000 crore ($5.5 billion).
2
For the Indian Army, approvals included the AKASH TARANG Anti-UAV system, MPATGM, MRSAM, V-SHORADS, an Active Protection System for Tanks, and a Jet-Based Kamikaze Drone System.
3
The MPATGM contract is worth about Rs 2,600 crore ($273 million), covering 5 simulators, 100 launchers and 2,300 missiles produced by Bharat Dynamics Limited (BDL).
4
For the Indian Navy, the DAC cleared the Multi-Influence Ground Mine (MIGM), the Naval Shipborne Unmanned Aerial System (NSUAS), and a Land-Based Testing Facility (LBTF) for electric propulsion.
5
For the Indian Air Force, approvals covered the Fixed-Wing Based High Altitude Pseudo Satellite (FW-HAPS) and HAMMER guided glide bombs.
6
The HAMMER deal, worth about Rs 2,300 crore ($252 million), will mainly equip the IAF's Rafale and Tejas fighters.

Deep Dive

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The AoN is an in-principle administrative approval, the first stage in India's defence capital acquisition process, and does not itself constitute a signed contract.
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The MIGM is intended to deny freedom of manoeuvre to the adversary, while the sensor-equipped NSUAS will enhance the Navy's situational awareness.
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The LBTF will support testing of motors and propulsion systems as the Navy plans electric propulsion for next-generation combatants; the Indian Navy will also use HAMMER once it receives the Rafale M.

Exam Focus

What is the approximate total value of the proposals cleared by the Defence Acquisition Council, and which public-sector firm produces the MPATGM systems approved for the Army?

Exam Relevance & Angle

The Defence Acquisition Council is the apex body for capital defence procurement, and its approvals — with named systems and rupee figures — are classic exam material. Terms like Acceptance of Necessity, MRSAM, V-SHORADS and the role of Bharat Dynamics Limited are frequently tested.

Target Exams

SBI POIBPS PORBI Grade BSSC CGLRRB NTPCUPSC CSEState PCS

Background & Context

The Defence Acquisition Council (DAC), headed by the Defence Minister, is the highest decision-making body in the Ministry of Defence for deciding on the capital acquisition requirements of the armed forces. Its first stage of approval, the Acceptance of Necessity (AoN), is an in-principle clearance that allows a procurement case to proceed; a formal contract follows later stages of the process. Bharat Dynamics Limited (BDL) is a defence public-sector undertaking that manufactures guided missiles and allied equipment. India's acquisition push increasingly emphasises indigenous systems for the Army, Navy and Air Force, alongside imported platforms such as the Rafale.