India’s Defence Acquisition Council (DAC) has approved defence procurement proposals worth about Rs 3.60 lakh crore on February 12, 2026. The approvals cover fighter aircraft, missiles, naval aircraft, army equipment and surveillance systems.
The decisions aim to strengthen India’s military preparedness across air, land and sea. A large portion of the equipment will be manufactured in India, supporting domestic defence production and employment.
The move directly affects defence companies, MSMEs, public sector firms like Hindustan Aeronautics Limited, and strengthens the operational capabilities of the Indian Armed Forces and the Indian Coast Guard.
What Happened in the Defence Acquisition Council Meeting on February 12, 2026
The Defence Acquisition Council (DAC), chaired by Rajnath Singh, granted Acceptance of Necessity (AoN) for multiple defence proposals worth around Rs 3.60 lakh crore.
For the Indian Air Force, approvals include procurement of Multi Role Fighter Aircraft (MRFA), combat missiles and Air-Ship Based High Altitude Pseudo Satellite (AS-HAPS) systems.
The MRFA platform includes aircraft such as Dassault Rafale. A majority of these fighter jets will be manufactured in India.
For the Indian Army, approvals cover Anti-Tank Mines (Vibhav) and overhaul of Armoured Recovery Vehicles (ARVs), T-72 tanks and BMP-II Infantry Combat Vehicles.
For the Indian Navy, AoN was cleared for 04 MW Marine Gas Turbine based Electric Power Generators and P-8I Long Range Maritime Reconnaissance Aircraft.
The Indian Coast Guard received approval for Electro-Optical and Infra-Red systems for Dornier aircraft.
Indian Air Force MRFA and Combat Missile Procurement Explained
The MRFA programme is designed to enhance the Indian Air Force’s air dominance and long-range strike capabilities. These aircraft can perform air superiority, ground attack and deep strike missions.
Combat missiles approved under the proposal will improve stand-off attack capability. This means the IAF can strike targets from long distances with high accuracy.
The AS-HAPS system will provide persistent intelligence, surveillance and reconnaissance. It can also support electronic intelligence, telecommunications and remote sensing for military use.
Manufacturing a majority of MRFA aircraft in India aligns with the government’s push for domestic defence production.
Indian Army Modernisation: Vibhav Anti-Tank Mines and T-72, BMP-II Upgrades
The Army will procure Vibhav Anti-Tank Mines to create defensive obstacle systems. These mines are used to slow or stop advancing mechanised forces.
The overhaul of T-72 tanks, BMP-II vehicles and Armoured Recovery Vehicles will extend the service life of existing platforms. This ensures operational readiness without immediate large-scale replacement costs.
Upgrading current systems is often more cost-effective and improves availability rates for frontline units.
Indian Navy Boost: P-8I Aircraft and Marine Gas Turbine Generators
The Indian Navy will acquire additional P-8I Long Range Maritime Reconnaissance Aircraft. These aircraft are critical for anti-submarine warfare, maritime surveillance and maritime strike roles.
In addition, the Navy will induct 04 MW Marine Gas Turbine based Electric Power Generators under the Make-I category of the Defence Acquisition Procedure 2020.
This move aims to reduce dependence on foreign manufacturers and increase self-reliance in naval power generation systems.
HAL Contract for Eight Dornier 228 Aircraft for Indian Coast Guard
The Ministry of Defence signed a contract worth Rs 2,312 crore with Hindustan Aeronautics Limited, Transport Aircraft Division, Kanpur, for eight Dornier 228 aircraft for the Indian Coast Guard.
The contract was signed in New Delhi on February 12, 2026, in the presence of Defence Secretary Rajesh Kumar Singh under the Buy (Indian) category.
The Dornier 228 aircraft will be equipped with operational role equipment to enhance maritime surveillance.
The programme is expected to generate direct and indirect employment by strengthening HAL’s production ecosystem and supporting MSMEs and ancillary industries.
Bigger Context Behind India’s Rs 3.60 Lakh Crore Defence Push
India has been steadily increasing defence capital expenditure to modernise its armed forces and reduce import dependence.
Large-scale AoN approvals signal future defence contracts and tenders. These create visibility for public sector units and private defence manufacturers.
Domestic manufacturing under Make-I and Buy (Indian) categories supports long-term capability building and supply chain development.
How the Defence Acquisition Council Decisions Affect Industry and Employment
The approvals open opportunities for Indian defence manufacturers, MSMEs and technology providers.
HAL’s Dornier contract alone is expected to strengthen local production ecosystems and create sustained work in maintenance, repair and overhaul services.
Over time, such orders support skill development, supply chain expansion and technology transfer within India.
What Happens Next After Acceptance of Necessity Approval
Acceptance of Necessity is the first formal step in the defence procurement process.
The next stages include issuing Requests for Proposal, commercial negotiations and final contract signing.
Actual deliveries and production schedules will depend on contract finalisation and manufacturing timelines.
Frequently Asked Questions
What is Acceptance of Necessity (AoN)?
AoN is the initial approval granted by the Defence Acquisition Council that allows a procurement proposal to move forward in the defence acquisition process.
How much is the total value of approvals cleared on February 12, 2026?
The total estimated value is about Rs 3.60 lakh crore.
Which aircraft were approved for the Indian Air Force?
The IAF received AoN for Multi Role Fighter Aircraft, including platforms such as Rafale, along with combat missiles and AS-HAPS systems.
What is the value of the HAL Dornier contract?
The contract for eight Dornier 228 aircraft is worth Rs 2,312 crore.
Conclusion
The Rs 3.60 lakh crore approvals mark one of the largest defence procurement clearances in recent years. The focus on domestic manufacturing, fleet upgrades and advanced surveillance systems reflects India’s push for stronger military readiness and greater self-reliance. The next phase will determine how quickly these approvals convert into signed contracts and deliveries.
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