DAC Approves Capital Acquisition Proposals Worth Rs 54,000 Crore to Upgrade T-90 Tanks Engine, Varunastra Torpedoes and Surveillance Systems

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New Delhi: The Defence Acquisition Council (DAC) granted Acceptance of Necessity (AoN) for eight capital acquisition proposals worth over  Rs 54,000 crore on March 20, 2025. Among these, the Indian Army will receive an upgraded 1350 HP engine for its T-90 tanks, enhancing their mobility, particularly in high-altitude regions by improving the power-to-weight ratio.

Currently powered by 1000 horsepower (HP) engines, the T-90 tanks will be upgraded to 1350 HP engines. The project is likely to be bagged by the Russian Rosoboronexport, which is doing a similar power upgrade for the T-72 tank. The new engine will help the T-90s operate more effectively in high-altitude areas of Ladakh and Sikkim. The upgrade would allow faster repositioning during combat and reduces vulnerability to enemy fire. The new engine will increase the power output by improving acceleration, climbing ability, and manoeuvrability in challenging terrains like deserts, mountains, and riverine regions. The upgraded engine, according to the sources, would make the T90 tanks more agile.

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Developed by Russia, the T-90 is a third-generation main battle tank (MBT), primarily designed to replace the older T-72 series. The T-72 tanks, too, have undergone such an upgrade—from 780 hp to 1000 hp for all the same reasons that T90s are being upgraded. The Indian Army is already scouting for protection gear to boost the survivability of its T-90 tanks for which an active protection system (APS) will be selected for countering threats from loitering munitions and top-attack missiles.

The DAC also approved the procurement of Varunastra torpedoes, an indigenous ship-launched anti-submarine weapon developed by the Naval Science & Technological Laboratory for the Indian Navy. The addition of these torpedoes will bolster the Navy’s ability to counter submarine threats effectively.

Additionally, the Defence Acquisition Council (DAC) approved the procurement of Airborne Early Warning & Control (AEW&C) aircraft systems for the Indian Air Force (IAF). The IAF currently operates two of these platforms known as Netra. In addition, one other such system is operated by the Centre for Airborne Systems (CABS). According to the ministry statement, the AEW&C systems are capability enhancers that can change the complete spectrum of warfare and exponentially increase the combat potential of every other weapon system. The IAF needs 12 such systems, and the current procurement is likely to be for six Mk1A AEW&C systems. The IAF will in the near future go in for six MkII AEW&Cs.

The DAC also approved new guidelines to reduce the timeline of various stages of the Capital Acquisition Process, to make it faster and efficient as part of the ‘Year of Reforms’ initiative in the Ministry of Defence. These reforms will ensure a more streamlined, effective, and efficient procurement system for modernising India’s armed forces.

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