In its first major decision in 2020, the Defence Acquisition Council (DAC), headed by Defence Ministry Rajnath Singh, gave approval for procurement of equipment worth over Rs 5,100 crore from indigenous sources. These include sophisticated electronic warfare systems for the Army designed by Defence Research and Development Organisation (DRDO) and manufactured locally by the Indian industry.

"These systems will be used in deserts and plains and will provide comprehensive electronic support and counter measure capabilities to the field formations in both communication and other aspects of electronic warfare," ministry of defence said in a statement after a meeting of the DAC chaired by Rajnath Singh and attended by Chief of Defence Staff Gen. Bipin Rawat and several top officials.

The defence acquisition body also shortlisted Larsen & Toubro Limited (L&T), Mazagon Dock Shipbuilders Limited (MDL) and five foreign companies for the mammoth Rs 50,000 crore Project-75-India under which six diesel electric stealth submarines will be built for the Navy. Last week, the Congress party had alleged that the government was promoting 'crony capitalists' by violating laid down rules and regulations after media reports of Adani group making attempts to enter into the submarine project race.

Calling it a significant step, the ministry stated, "The DAC approved shortlisting of Indian strategic partners (SP) and the potential original equipment manufacturers (OEMs) that would collaborate with SPs to construct six conventional submarines in India." It also added," This programme is being progressed under the 'Strategic Partnership Model', promulgated in 2017 to give a major boost to 'Make in India' in Defence Sector."

The ministry maintained that the strategic partner is expected to play a transformational role in building an eco-system in the country, comprising development entities, specialised vendors and suppliers, especially those from the MSME sector. "SP model also aims at promoting India as a manufacturing hub for defence equipment, in addition to establishing an industrial and R&D eco-system, capable of meeting the future requirements of the armed forces besides giving boost to exports," said ministry in its statement.

The DAC also approved prototype testing of trawl assemblies designed by DRDO for T-72 and T-90 tanks, providing an important indigenous de-mining capability to the Army. Another proposal for inclusion of innovations for defence excellence (iDEX) in defence procurement procedure was also approved by the ministry. According to the ministry, the move would provide avenues in capital procurement for the armed forces to startups and innovators working for iDEX and provide huge fillip to their budding efforts.

"Today's decisions are in keeping with the mandate given to the CDS and the newly-constituted department of military affairs to promote use of indigenous hardware by the services," ministry of defence statement stated.