The government has approved five major defence acquisition projects worth ₹21,772 crore to enhance the country’s defence preparedness. The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, granted Acceptance of Necessity (AoN) for these projects.
One key approval is for the procurement of 31 New Water Jet Fast Attack Crafts (NWJFACs) for the Indian Navy. These vessels are designed for coastal operations, including surveillance, patrolling, search and rescue, and anti-piracy missions around island territories.
Another notable acquisition is for 120 Fast Interceptor Craft (FIC-1), which will escort high-value naval units such as aircraft carriers and submarines and strengthen coastal defence.
The DAC also greenlit the procurement of an advanced Electronic Warfare Suite (EWS) for Su-30 MKI fighter jets. This includes self-protection jammer pods, next-generation radar warning receivers, and related equipment to improve the aircraft’s operational capabilities and safeguard them from enemy radars and weapons during missions.
To bolster coastal security, the DAC approved six Advanced Light Helicopters (ALH) M (MR) for the Indian Coast Guard. These helicopters will enhance surveillance and response capabilities in coastal areas.
Additionally, the council sanctioned the overhaul of T-72 and T-90 tanks, BMPs, and engines of Sukhoi fighter aircraft, extending the service life of these assets.
Earlier in September, the government approved ten other capital acquisition proposals worth ₹1,44,716 crore, focusing on modernising the Indian Army’s tank fleet with futuristic Main Battle Tanks and boosting local defence manufacturing.
States Need 30-40% Growth in Revenue, Capex to Meet FY25 Targets: ICRA
ICRA has reported that 15 major Indian states must significantly accelerate their financial activities in the second half of FY25 to meet their annual targets. Revenue generation needs to grow by 30%, expenditure by 26%, and capital expenditure (capex) by 40%. This urgency follows a slower-than-expected start in the first half of the fiscal year, largely attributed to the impact of elections.
India’s overall capex target for FY25 stands at ₹11.11 trillion. However, only ₹4.15 trillion was spent during April-September, falling short of the ₹4.9 trillion spent in the same period last year. This highlights the need for a substantial ramp-up in financial execution during the remaining months of the fiscal year to meet set objectives.
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