DAC Clears ₹2.12 Lakh Crore of Acquisition Proposals, With Loitering Munitions, Counter-Drone Systems and VSHORADS for the Army

India's Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, on Monday, 26 October 2026, granted Acceptance of Necessity (AoN) to capital acquisition proposals worth an estimated ₹2,12,000 crore for the Army, Navy and Air Force. The Ministry of Defence said about 82% of the procurement value is expected to be sourced from Indian industry.

The package is one of the largest single-day clearances of the year. It is weighted towards the kinds of systems that recent conflicts have shown matter most: drones and the means to stop them, short-range air defence, mobile artillery and decoys that protect warships from incoming missiles.

What an AoN does, and does not, mean

An AoN is the first formal step in India's capital procurement process. It confirms that the armed forces need a capability and allows the ministry to move to requests for proposals, trials, commercial negotiations and, eventually, contracts. It is not a purchase order. Several reports on Monday's meeting stressed that no contracts have been signed and that quantities, prices and delivery schedules for most items were not disclosed.

Even so, AoN decisions are closely watched by industry because they set the order pipeline for the next several years. With 82% of the value earmarked for domestic sources, Monday's approvals amount to a large signal of demand for Indian defence manufacturers, from established groups to drone start-ups.

The Army's list: drones, counter-drones and firepower

The Army accounts for the largest share of items. According to the ministry list carried by ANI, The Statesman and others, it includes:

• High Mobility Vehicles (HMVs) for logistics and troop movement.
• A Self-Propelled Tracked Gun System. ThePrint reported that this covers 335 more 155 mm/52-calibre K9 Vajra-T guns; the ministry statement describes it only generically, and reports differ on the number.
• A Gun Shot Response System (GSRS), which locates the source of hostile fire.
• Light Multi Role Helicopters (LMRH), described as serving both Army and Air Force roles.
• Very Short-Range Air Defence Systems (VSHORADS), the shoulder-fired or man-portable missiles used against low-flying aircraft, helicopters and drones.
• A Platform-Based Counter Unmanned Aerial System (C-UAS), which the ministry said will enhance the survivability of tanks on the modern battlefield.

Reports by The Week and Deccan Herald also describe Army approvals for long-range loitering munitions, often called kamikaze drones, along with unmanned aerial vehicles and an integrated surveillance and targeting system. Loitering munitions give ground units a way to search for and strike targets deep behind the front line without risking aircraft or pilots.

Why the K9 Vajra matters to Indian industry

The K9 Vajra-T is built in India by Larsen & Toubro under licence from South Korea's Hanwha, based on its K9 Thunder howitzer. L&T describes it as a 155 mm/52-calibre tracked self-propelled gun. The first contract for 100 guns was completed in February 2021, ahead of schedule, and a repeat order for 100 more followed in December 2024. In June 2026, The Defense Post reported that the Army was planning an expansion of about 300 more guns.

A third, larger batch would deepen L&T's production line and push up the share of locally made components in each gun. That progression, from licensed assembly towards higher indigenous content, is the model India is trying to repeat across many of the platforms on Monday's list.

Navy: decoys and next-generation warships

For the Navy, the DAC approved an Active Offboard Decoy System (AODS), which is deployed from a ship to lure incoming anti-ship missiles away from the vessel. The ministry also cleared what it called indigenously designed and constructed major naval platforms. The Tribune and ThePrint reported that this includes the Navy's plan for a next-generation destroyer with a displacement of more than 10,000 tonnes, although defence officials did not give details.

A destroyer of that size would be larger than any surface combatant India has built so far, and would be designed and built in Indian shipyards. Programmes of this scale take years to move from AoN to keel-laying, but they shape the work of public and private yards for a decade or more.

Air Force: helicopters, air defence and weather radar

The Indian Air Force's share covers helicopters, air defence systems and weapons, as well as a Mobile X-Band Doppler Weather Radar System. The weather radar is a less visible item but an important one: accurate, local weather data supports flight safety and mission planning at forward air bases.

The drone and counter-drone thread

Monday's approvals continue a steady run of counter-drone and drone-related decisions. On 21 October the ministry signed a contract worth about ₹770 crore with Bharat Electronics Limited for Improved Low Level Light Weight Radars (LLLR-I), which are designed to detect and track fighter-sized aircraft as well as mini and micro drones. Platform-based C-UAS for tanks and VSHORADS for forward units extend that layered defence, while loitering munitions and UAVs add offensive reach.

For Indian drone makers, many of which have grown out of the iDEX innovation programme and emergency procurements, a long-range loitering munition requirement is an opportunity to move from small orders to programme-scale production. For electronics firms, counter-drone sensors, jammers and fire-control systems are a growing market at home and a potential export line.

How it fits the bigger picture

In September the DAC cleared about ₹1.10 lakh crore of proposals. Monday's ₹2.12 lakh crore adds to a large pipeline that the ministry has repeatedly tied to its push for self-reliance in defence. The 82% domestic-sourcing figure is the headline number for that policy, but the real test will come in the next stages: how quickly requests for proposals are issued, how trials are run, and whether Indian suppliers can deliver at the volumes and timelines the forces need.

If they can, the approvals will do more than modernise the armed forces. They will build the manufacturing depth, supply chains and engineering talent that India's defence-technology sector needs to compete for export orders, and they will give deep-tech start-ups working on autonomy, sensing and electronic warfare a domestic customer large enough to scale.

Sources

• https://aninews.in/news/national/general-news/dac-clears-capital-acquisition-proposals-worth-rs-212-lakh-crore-for-defence-forces20261026171642/
• https://www.thestatesman.com/india/dac-clears-defence-acquisition-proposals-worth-rs-2-12-lakh-crore-82-to-be-sourced-from-indian-industry-1503655317.html
• https://www.tribuneindia.com/news/defence/army-artillery-drones-helicopters-and-more-centre-clears-rs-2-12-lakh-crore-deals-who-gets-what/
• https://theprint.in/defence/indias-mega-artillery-push-300-more-vajra-guns-proposals-worth-rs-2-12-lakh-crore-cleared/3082209/
• https://www.theweek.in/news/defence/2026/10/26/kamikaze-drones-attack-ready-helicopters-missile-defences-inside-indias-rs-212-lakh-crore-defence-acquisition-plan.html
• https://www.deccanherald.com/india/government-approves-buying-rs-212-lakh-crore-worth-of-weapons-and-military-systems-4195680
• https://www.indiatvnews.com/news/india/dac-clears-rs-2-12-lakh-crore-defence-procurement-proposals-82-percent-to-be-sourced-from-indian-industry-latest-updates-2026-10-26-1057958
• https://www.larsentoubro.com/lt-pes/our-offerings/land-platforms-equipment-and-systems/land-platforms/artillery-systems/k9-vajra-t-55-mm-52-cal-tracked-self-propelled-sp-gun
• https://thedefensepost.com/2026/06/11/indian-k-9-vajra/
• https://swarajyamag.com/defence/defence-ministry-signs-rs-770-crore-contract-with-bel-to-procure-advanced-low-level-radars-for-indian-army-to-counter-drone-threats