Enhancing Aatmanirbharta in Defence: Defence Acquisition Council Expected to Approve High-Tech Warships, Next-Gen Tanks Projects Worth Rs 1.3 Lakh Crore

New Delhi: The Defence Ministry is set to undertake major projects, including the construction of seven advanced frigates for the Indian Navy and the Indian Army’s proposal to replace its T-72 tanks with modern Future Ready Combat Vehicles (FRCVs). The Defence Acquisition Council (DAC) is scheduled to convene, review and potentially authorise these high-profile initiatives with a total value of Rs 1.3 lakh crore on September 3, 2024.

The meeting, chaired by Defence Minister Rajnath Singh will be attended by top officials, including the Chief of Defence Staff, the three service chiefs, the Defence Secretary, and other relevant officials.

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As per defence sources indication, the Defence Acquisition Council (DAC) is expected to approve issuing a tender worth approximately Rs 70,000 crore to Indian shipyards under the ‘Make in India’ initiative, including private sector shipyards. Aimed to enhance the Indian Navy’s capabilities with the most modern warships ever built in India, Project 17 Bravo is one of the key projects under consideration. Valued at approximately Rs 70,000 crore, it involves the construction of seven advanced stealth frigates, following the Nilgiri-class frigates currently under construction.

The tender will likely involve Category A shipyards, such as Mazagon Dock Shipbuilders, Garden Reach Shipbuilders and Engineers Limited, Goa Shipyard Limited, and Larsen & Toubro, among others. To expedite the project and prevent delays, the tender is expected to be split between two shipyards, though specific details will be available only after the project’s approval. Currently, Mazagon Dock Shipbuilders and Garden Reach Shipbuilders are constructing frigates under Project 17A (Nilgiri-class), with four frigates being built by MDL and three by GRSE.

At the DAC Meeting, the Indian Army’s proposal to replace its Russian-origin T-72 tanks with 1,700 FRCVs will also be discussed. The Army plans to replace the T-72s with indigenous FRCVs, which will be built under the Make-1 procedure of the Defence Acquisition Procedure. Indian vendors will be required to manufacture the tanks with over 60 per cent indigenous content, and major companies like Bharat Forge and Larsen & Toubro are expected to participate in the tender.

The Indian Army aims to complete the FRCV project in phases, with approximately 600 tanks being built in each phase. Additionally, the Army is expected to propose acquiring around 100 BMP-2 infantry combat vehicles during the high-level meeting. The overall FRCV project is likely to cost over Rs 50,000 crore, aimed at modernising the force’s Armoured Regiments.

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These projects highlight the its significance for national security and the modernisation of the Indian military and also reflects India’s commitment to enhancing self-reliance in defence manufacturing and aligned with the ‘Make in India’ vision. By investing in domestic production and modernising military assets, India aims to strengthen its national security and defence infrastructure. Both the Navy and the Army seek to strengthen their capabilities through these substantial acquisitions.

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