NEW DELHI: Ahead of French President Emmanuel Macron’s visit to India next week, the defence ministry on Thursday accorded Acceptance of Necessity (AoN) for capital acquisition proposals worth around Rs 3.6 lakh crore, including the much awaited government-to-government deal for 114 Rafale multi-role fighter aircraft estimated at about Rs 3.25 lakh crore.
Sources in the defence and security establishment said the Cabinet Committee on Security (CCS), chaired by Prime Minister Narendra Modi, is likely to meet on Friday to clear the Rafale deal, which is expected to be a key outcome ahead of the French President’s visit. However, they added the government-to-government contract is unlikely to be signed before early 2027.
The AoN granted by the Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, marks the first formal step in the procurement process, after which commercial negotiations and contract finalisation follow. The timeline for conclusion varies depending on the complexity of negotiations.
Under the proposal, the Indian Air Force is expected to receive 88 single-seat and 26 twin-seat Rafale fighters. Around 18 aircraft are likely to be delivered in fly-away condition, while the remaining 96 will be manufactured in India with up to 60 per cent indigenous content.
French aviation major Dassault Aviation has already partnered with Tata Advanced Systems Limited (TASL) to manufacture fuselage sections of the Rafale in India in line with localisation requirements. Macron is also expected to visit Hindustan Aeronautics Limited (HAL) during his trip.
Sources said that the overall Rafale package includes an estimated Rs. 2.5 lakh crore for the aircraft and associated systems, with weapons and support elements taking the total value to around Rs. 3.25 lakh crore. This includes procurement of approximately 100-120 SCALP air-launched cruise missiles, estimated to cost around Rs 2,700 crore. The missile was used during Operation Sindoor to strike targets in Bahawalpur and Muridke in the early hours of 7 May.
The contract is also expected to incorporate provisions for upgrading Indian Rafales to the future F5 standard once available, while the existing fleet would be brought up to the F4 configuration, which includes enhanced sensor fusion, improved connectivity and expanded weapons capability.
The DAC also approved procurement of additional long-range surface-to-air missiles (LRSAM) for Project Sudarshan Chakra. Sources said the proposal pertains to replenishment and augmentation of missile stocks for the S-400 air defence system, with around 280 missiles estimated to be worth approximately Rs 3,000 crore.
India had signed a Rs 40,000 crore deal with Russia in October 2018 for five S-400 squadrons to strengthen its long-range air defence capability. Deliveries were delayed following the outbreak of the Russia-Ukraine conflict in 2022, which disrupted production schedules and supply chains.
India is yet to receive the fourth and fifth squadrons, with sources suggesting that one squadron is expected by June and the final delivery by November this year. The S-400 system played a significant role during Operation Sindoor, recording multiple kills against Pakistan Air Force (PAF) aerial assets, including the longest-range interception of a PAF Saab Erieye airborne early warning aircraft.
Among other approvals, the DAC cleared procurement of Air-Ship Based High Altitude Pseudo Satellites (AS-HAPS) for the Indian Air Force, estimated at Rs 15,000 crore. These pseudo-satellites operate in the stratosphere for extended durations and are intended to provide persistent intelligence, surveillance and reconnaissance (ISR), electronic intelligence, telecommunications relay and remote sensing capabilities for military operations.
The council also approved acquisition of six additional P-8I long-range maritime reconnaissance and anti-submarine warfare aircraft for the Indian Navy, estimated at Rs 28,000 crore, to strengthen surveillance across the Indian Ocean Region.
India inducted its first P-8I aircraft in 2013 after signing a $2.1 billion contract with the United States in 2009 for eight aircraft. A follow-on order for four more aircraft was placed in 2016, with deliveries completed in 2021.
For the Navy, AoN was also granted for induction of a 4 MW Marine Gas Turbine-based Electric Power Generator under the Make-I category of the Defence Acquisition Procedure 2020. The project is expected to reduce dependence on foreign suppliers for onboard power generation systems and strengthen indigenous design and manufacturing capability for future warships.
For the Indian Army, the DAC cleared procurement of ‘Vibhav’ self-neutralising anti-tank mines. Sources said the approval covers more than one lakh mines, which will be deployed as part of integrated obstacle systems intended to slow down or channelise advancing enemy armoured and mechanised formations during conflict.
The council also approved overhaul and life-extension of existing T-72 main battle tanks and BMP-II infantry combat vehicles. “The overhaul is aimed at restoring operational availability and extending the service life of these platforms through refurbishment of engines, transmission systems, fire-control equipment and mobility components,” sources said, adding that such upgrades are critical to maintaining combat readiness amid significant delays in induction of replacement platforms.
The Indian Coast Guard will also procure Electro-Optical/Infra-Red (EO/IR) systems for its Dornier-228 aircraft to boost its maritime surveillance capability. These sensor suites are key for enabling day-and-night detection, tracking and identification of vessels and objects at sea.