2023 Year-ender- Strategic defence approvals and contracts this year – Here is all you want to know

2023 Year-ender: Strategic defence approvals and contracts this year – Here is all you want to know

In the year 2023, proposals exceeding Rs 3.50 lakh crore were approved, reflecting a commitment to enhance the operational preparedness of the Armed Forces.

DAC Approvals: A Comprehensive Overview

July witnessed DAC’s approval for the procurement of 26 Rafale Marine aircraft, reinforcing India’s strategic capabilities. In June, DAC sanctioned the acquisition of 31 MQ-9B High Altitude Long Endurance Remotely Piloted Aircraft Systems, strengthening tri-services defence capabilities.

March saw DAC’s nod for capital acquisition amounting to over Rs 70,500 crore under the ‘Buy Indian-IDDM’ category. Key approvals included BrahMos missiles, Shakti EW systems, Utility Helicopters-Maritime, Long Range Stand-Off Weapon for the Indian Air Force, and 155mm/52 Caliber ATAGS for the Indian Army.

September witnessed the approval of nine capital acquisition proposals worth Rs 45,000 crore, covering Light Armoured Multipurpose Vehicles, Integrated Surveillance & Targeting System, and Next Generation Survey Vessels, among others.

January marked the approval of proposals for the Indian Army and Navy, totalling Rs 4,276 crore under the ‘Buy Indian-IDDM’ category. This included HELINA Anti-Tank Guided Missiles, VSHORAD missile system, Brahmos Launcher, and Fire Control System for naval vessels.

In August, DAC greenlit proposals worth approximately Rs 7,800 crore, including the procurement of Electronic Warfare Suite for Mi-17 V5 Helicopters and Ground-Based Autonomous System for mechanized infantry and armoured regiments.

These strategic approvals underscored the government’s commitment to reinforcing India’s defence capabilities across all branches of the Armed Forces.

Contracts with BEL: Strengthening Operational Capabilities

The Ministry of Defence entered into significant contracts with Bharat Electronics Limited (BEL), totalling Rs 17,176 crore. These contracts aimed at enhancing the operational capabilities of the Armed Forces through various technological advancements.

Contracts included the supply of Medium Power Radars ‘Arudhra,’ DR-118 Radar Warning Receivers, Integrated Electronic Warfare Systems ‘Project Himshakti,’ Automated Air Defence Control & Reporting System ‘Project Akashteer,’ Sarang Electronic Support Measure systems, and Lynx-U2 Fire Control Systems. Additionally, a contract for Electronic Fuzes for the Indian Army, spanning a decade, was signed, promoting the spirit of ‘Aatmanirbhar Bharat’ and fostering self-reliance in defence manufacturing.

HTT-40 Basic Trainer Aircraft: Building Future Airpower

A contract with HAL for the procurement of 70 HTT-40 Basic Trainer Aircraft for the Indian Air Force was signed at a cost of Rs 6,828.36 crore. Designed with approximately 56percent indigenous content, the HTT-40 is set to play a pivotal role in training effectiveness and has the potential to generate employment across more than 100 MSMEs.

Cadet Training Ships: Nurturing Naval Excellence

A contract with Larsen & Toubro Limited (L&T) for the procurement of three Cadet Training Ships, valued at over Rs 3,100 crore, was signed. These ships, designed for officer cadet training and humanitarian operations, will contribute to the future requirements of the Indian Navy, fostering indigenous shipbuilding and generating significant employment opportunities.

Dornier-228 Aircraft: Enhancing Air Capabilities

A contract for the procurement of six Dornier-228 aircraft for the Indian Air Force from HAL was signed at a cost of Rs 667 crore. These aircraft, with upgraded fuel-efficient engines, will contribute to route transport roles, communication duties, and pilot training.

Improved Akash Weapon System: Strengthening Air Defence

A contract worth over Rs 8,160 crore with Bharat Dynamics Limited was signed for the procurement of the improved Akash Weapon System for the Indian Army. This indigenous Short-Range Surface-to-Air Missile Air Defence System, designed by DRDO, reflects an overall indigenous content of 82percent, set to increase to 93percent by 2026-27.

Offshore Patrol Vessels & Missile Vessels: Maritime Strength

In a significant move towards ‘Aatmanirbharta,’ contracts with Indian shipyards for the acquisition of 11 Next Generation Offshore Patrol Vessels and six Next Generation Missile Vessels marked a pivotal step in maritime capabilities.

These contracts, valued at approximately Rs 19,600 crore, underscored the commitment to self-reliance in defence. Of the 11 Offshore Patrol Vessels, seven will be indigenously designed and manufactured by Goa Shipyard Ltd (GSL), while four will be crafted by Garden Reach Shipbuilders and Engineers (GRSE). The Next Generation Missile Vessels, with delivery scheduled from March 2027, will boast stealth, high speed, and offensive capabilities.

Fleet Support Ships: Extending Naval Reach

A contract with Hindustan Shipyard Limited for the acquisition of five Fleet Support Ships (FSS) for the Indian Navy, at an overall cost of approximately Rs 19,000 crore, marked a historic milestone. These 44,000-ton ships, built in India by an Indian Shipyard, will play a crucial role in replenishing ships at sea, supporting prolonged naval operations without returning to harbour. The project is anticipated to generate substantial employment, with nearly 168.8 lakh man-days over eight years.

Upgraded Super Rapid Gun Mount: Precision in Naval Defence

A contract with Bharat Heavy Electricals Limited (BHEL) for the procurement of 16 Upgraded Super Rapid Gun Mounts (SRGM) and associated equipment for the Indian Navy under the ‘Buy Indian’ category, at a total cost of Rs 2,956.89 crore, emphasized the pursuit of precision in naval defence. The upgraded SRGM, a medium-caliber anti-missile/anti-aircraft point defence weapon system, will enhance naval capabilities.

INS Shankush Medium Refit with Life Certification: Modernizing Submarine Fleet

A contract with Mazagon Dock Shipbuilders Limited (MDL) for the Medium Refit with Life Certification of the Sub-Surface Killer Class Submarine ‘INS Shankush,’ at an overall cost of Rs 2,725 crore, reflected the commitment to modernizing the submarine fleet. Post Medium Refit with Life Certification (MRLC), INS Shankush will be combat-ready, contributing to the active fleet of the Indian Navy with upgraded combat capabilities.

Radio Relay Communication Equipment Containers: Boosting Indigenous Manufacturing

In a move to bolster indigenous manufacturing, a contract with ICOMM Tele Limited, Hyderabad, for the procurement of 1,035 Radio Relay Communication equipment containers, valued at nearly Rs 500 crore, under the ‘Buy Indian’ category, marked a significant stride. These containers, scheduled for delivery in the current financial year (2023-24), contribute to the indigenous production of defence equipment.

Upgraded Dornier Aircraft for ICG: Strengthening Coast Guard Operations

A contract with HAL for the procurement of two Upgraded Dornier Aircraft for the Indian Coast Guard, at an overall cost of Rs 458.87 crore under the ‘Buy Indian’ category, aimed at strengthening coast guard operations. Fitted with advanced equipment such as Glass Cockpit, Maritime Patrol Radar, Electro-Optic Infrared device, and Mission Management System, these aircraft will contribute significantly to maritime security.

300th iDEX Contract: Driving Innovation in Defence

The Innovations for Defence Excellence (iDEX) initiative reached a significant milestone with the signing of the 300th contract. The contract with Agnit Semiconductors Private Limited focused on the design and development of advanced Gallium Nitride Semiconductors, crucial for the next generation of wireless transmitters in defence applications. This milestone underscored the commitment to indigenous design and development, opening avenues for innovation in the defence sector, including potential exports.