Govt clears acquisition proposals for military goods worth ₹1.05 lakh crore
As per the official release, the 10 capital acquisition proposals are set to be carried out through indigenous sourcing from Indian companies.
'Defence Acquisition Council, under the chairmanship of Raksha Mantri Shri Rajnath Singh, on July 03, 2025, accorded Acceptance of Necessity (AoN) for 10 capital acquisition proposals amounting to approx. ₹ 1.05 lakh crore through indigenous sourcing,' said the Ministry of Defence in its official statement.
The Acceptance of Necessity (AoN) or the need for these proposals is for defence equipment like the procurement of Armoured Recovery Vehicles, an Electronic Warfare System, an Integrated Common Inventory Management System for the Tri-Services, and Surface-to-Air Missiles.
'These procurements will provide higher mobility, effective air defence, better supply chain management and augment the operational preparedness of the Armed Forces,' said the Ministry of Defence in the official statement.
The Defence Ministry also cleared the AoNs for the procurement of Moored Mines, Mine Counter Measure Vessels, Super Rapid Gun Mount and Submersible Autonomous Vessels, as the government seeks to mitigate the potential risks posed to the Naval and Merchant Vessels of India.
'To provide further impetus to indigenous design and development, AoNs were accorded under the Buy (Indian-Indigenously Designed Developed and Manufactured) category,' said the ministry.
The Ministry of Defence in June 2025 was planning to review a ₹ 30,000 crore proposal to procure three regiments of the indigenous Quick Reaction Surface-to-Air Missile (QR-SAM) system for the Indian Army, according to Mint's earlier report.
On 28 March 2025, the Cabinet Committee on Security (CCS) approved the biggest-ever deal to buy 156 Light Combat Helicopters worth over ₹ 62,000 crore for the Indian Army and Indian Air Force from Hindustan Aeronautics Ltd.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
34 minutes ago
- Business Standard
India plans ₹2,000 cr drone incentive after Pakistan conflict, sources say
India will launch a $234 million incentive programme for civil and military drone makers to reduce their reliance on imported components and counter rival Pakistan's programme built on support from China and Turkey, three sources told Reuters. India's push to build more home-grown drones stems from its assessment of the four-day clash with Pakistan in May that marked the first time New Delhi and Islamabad utilized unmanned aerial vehicles at scale against each other. The nuclear-armed neighbours are now locked in a drones arms race. New Delhi will launch a 20 billion Indian rupees ($234 million) programme for three years that will cover manufacture of drones, components, software, counter drone systems, and services, two government and one industry source, who did not want to be named, told Reuters. Details of the programme have not been previously reported and its planned expenditure is higher than the modest 1.2 billion rupees production-linked incentive scheme New Delhi launched in 2021 to promote drone start-ups, which have struggled to raise capital and invest in research. India's civil aviation ministry, which is leading the incentives programme, and defence ministry did not immediately respond to e-mails seeking comment. Reuters previously reported that India plans to invest heavily in local industry and could spend as much as $470 million on unmanned aerial vehicles over the next 12 to 24 months, in what government and military officers said would be a staggered approach. In the past, India has mainly imported military drones from its third-largest arms supplier, Israel, but in recent years its nascent drone industry has scaled up its cost-effective offerings, including for the military, although reliance on China continues for certain components such as motors, sensors and imaging systems. Through the incentives, India is aiming to have at least 40% of key drone components made in the country by the end of fiscal year 2028 (April-March), the two government sources said. "During (the India-Pakistan) conflict there was quite a lot of use of drones, loitering munitions and kamikaze drones on both sides," Indian Defence Secretary Rajesh Kumar Singh said last week. "The lesson that we've learned is that we need to double down on our indigenisation efforts to ensure that we build a large, effective, military drone manufacturing ecosystem." India bans import of drones but not their components and the government has planned additional incentives for manufacturers that procure parts from within the country, the two government sources said. The state-run Small Industries Development Bank of India would also support the incentive programme by providing cheap loans for working capital, research and development needs for the firms, the government sources added. Currently, there are more than 600 drone manufacturing and associated companies in India, according to estimates shared by an industry source involved in the discussions for the incentives programme.
&w=3840&q=100)
Business Standard
34 minutes ago
- Business Standard
Indian insurers urge IRDAI to revamp bond valuation to boost debt market
Insurance companies are seeking a shift to a method that values bonds individually, for example differentiating between debt issued by state-run firms and private companies Bloomberg By Bhaskar Dutta and Saikat Das Indian insurers have asked their regulator to revamp bond valuation norms, according to people familiar with the matter, a move that could encourage greater participation in the corporate debt market. Insurance companies are seeking a shift to a method that values bonds individually, for example differentiating between debt issued by state-run firms and private companies, the people said, asking not to be named as the talks are private. The current approach assigns similar valuations to bonds with the same rating, they added. The push for a new methodology comes at a time when Indian insurers' assets are rising, driving increased investment in debt securities. Easing valuation rules could improve liquidity in India's relatively shallow corporate bond market, they said. As India's economy expands, the nation's insurance market will be the fastest growing among the other G20 nations, global reinsurance company Swiss Re wrote earlier this year. Insurance companies are making the request to shield their so-called unit-linked insurance plans, or ULIPs, from potential losses, the people said. These plans combine investment in financial markets with life insurance coverage. Growing market The discussions around the valuation models signal a growing market, although a potential shift calls for careful risk management on the part of insurers, said Anil Gupta, senior vice president at ICRA Ltd., an affiliate of Moody's Ratings, that provides valuations for fixed-income instruments. The current method — — the so-called matrix valuation — prices illiquid bonds to comparable securities that are more regularly traded. As a result, many bonds in an insurer's portfolio end up being valued the same way, the people said. This can lead to losses when the bonds are sold in the market, especially as the method doesn't distinguish between securities issued by state-owned firms and private issuers, they added. In contrast, the preferred security-level valuation method accounts for the unique characteristics of each instrument. This shift would better align valuations with actual market transactions and conditions, they added. While the security-level method is more reflective of market conditions, there are potential risks involved depending on the kind of securities being considered, said Gupta. If bonds being chosen are illiquid, then the method runs the risk of overstating the value of a portfolio, he said.
Mint
35 minutes ago
- Mint
Rohit Sharma, Virat Kohli's India return likely to be delayed as BCCI told not to go ahead with Bangladesh tour: Report
WhaThe return of Rohit Sharma and Virat Kohli in India colours might get delayed as the Board of Control for Cricket in India (BCCI) was reportedly instructed by the government to not go ahead with their white-ball tour of Bangladesh next month amidst rising diplomatic tensions between the two countries. India were slated to play three ODIs and three T20Is against Bangladesh, starting from August 17. If India do not travel to Bangladesh, it could be a big blow to the Men in Blue in the lead up to the 2026 T20 World Cup. India have not played a single T20I since the England series at home in January-February. Both Virat and Rohit have already retired from Tests and T20Is. A postponement of the India vs Bangladesh series further extends Rohit-Virat's return to the cricket field. However, there has been no official intimation from the BCCI regarding the Bangladesh tour. According to an India Today report, the Indian government's decision to not allow BCCI comes from the current political condition in Bangladesh. "The political situation in Bangladesh is not stable, and in light of the diplomatic standoff, the Indian government has advised the BCCI not to go ahead with this tour," the source said. Both the countries are facing trade-related tensions at the moment after the Indian government imposed a major import route restrictions on goods, which includes ready-made garments and processed food items from Bangladesh. The Directorate General of Foreign Trade (DGFT) has also issued a notification that no ready-made garment products can enter India via northeast-based integrated check posts (ICPs). It came after Bangladesh imposed a similar restriction in April. According to the Future Tours Programme (FTP), India are set to travel to Australia in October-November for three ODIs and five T20Is. Post that, India will host South Africa in November-December for two Tests, three ODIs and five T20Is. If the Bangladesh tour is called off, Rohit and Virat will return in India colours in Australia.
