DAC clears proposal to buy 114 Rafale jets from France, 90 to be manufactured in India with 50% indigenous content

According to a statement issued by the Ministry of Defence (MoD), the DAC accorded Acceptance of Necessity (AoN) for multiple proposals for an estimated Rs 3.60 lakh crore. Aside from the Rafale fighter jets and the P8I aircraft, AoN was approved for the procurement of Combat Missiles and Air-Ship Based High Altitude Pseudo Satellite (AS-HAPS).

Earlier, an indigenous content of 30 per cent was discussed for the jets that were to be manufactured in India. However, officials said Thursday that in the subsequent commercial negotiations, it would be raised to nearly 50 per cent. Additionally, India will have the full authority to integrate Indian weapons and systems into the aircraft.

A final agreement will be signed once commercial negotiations conclude and the Cabinet Committee on Security (CCS) approves the acquisition. The IAF already operates 36 Rafales, and the Indian Navy would be inducting 26 Rafale M aircraft for carrier operations over the next few years. The procurement of additional Rafales will thus help minimise logistical and training costs.

The modern combat jets will be critical in filling the gap in the IAF’s fighter squadron strength, which stands at 29 at present, against the sanctioned squadron strength of 42. They will bridge this capability gap till India’s indigenous fighter jet programmes — such as LCA Mk1 A, LCA Mk 2, and the fifth-generation Advanced Medium Combat Aircraft (AMCA) — mature.

AMCA is expected to enter service only after 2035, and Indian planners are thinking of procuring a separate fifth-generation fighter jet in the interim.

“The procurement of MRFA will enhance the capability of undertaking air dominance roles across the spectrum of conflict and significantly boost the deterrence capabilities of IAF with long range offensive strikes,” the Defence Ministry statement noted.

It added: “The Combat Missiles will enhance the stand-off ground attack capability with deep strike power and very high accuracy. The AS-HAPS will be utilised towards carrying out persistent Intelligence, Surveillance and Reconnaissance, Electronic Intelligence, telecommunication and remote sensing for military purposes.”

The DAC has also cleared the procurement of six additional Poseidon 8I (P-8I) maritime surveillance and anti-submarine warfare aircraft from the US, which will be a fully global procurement and will not involve any offsets, technology transfers, or other obligations.

The Defence Procurement Board (DPB) is learnt to have cleared the procurement on January 16, weeks before US President Donald Trump on February 2 announced an agreement with India on a trade deal and cut tariff to 18 per cent.

According to highly placed sources, the decision to go ahead with the acquisition of the P-8Is, among other factors, may have played a significant role in achieving a breakthrough in the trade talks. The DPB had also cleared the procurement of Rafale jets on the same day.

So, amid the increased push for ‘Make in India’, this is one of the few procurements where all aircraft will be bought in a fly-away condition from the US.

A long-range, multi-mission maritime patrol aircraft operated by the Indian Navy, the Boeing P-8Is are specifically designed for anti-submarine warfare (ASW), anti-surface warfare (ASW), and intelligence, surveillance and reconnaissance (ISR). “The acquisition of P8I aircraft will significantly boost the Navy’s combat/war-fighting capability of long-range anti-submarine warfare, maritime surveillance and maritime strike capability,” the Defence Ministry said.

For the Navy, AoNs have also been granted for 4 MW Marine Gas Turbine based Electric Power Generator, the induction of which under Make-I category of Defence Acquisition Procedure 2020 will minimise the dependency on foreign manufacturers, ensure self-reliance in power generation requirement of Indian Navy, the statement noted.

According to the Defence Ministry, AoNs have also been accorded for the procurement of Anti-Tank Mines (Vibhav) and overhaul of Vehicle Platforms of Armoured Recovery Vehicles (ARVs), T-72 Tanks and Infantry Combat Vehicles (BMP-II) for the Army.

“Vibhav mines will be laid as anti-tank obstacle system to delay the advance of enemy mechanised forces. The overhaul of vehicle platforms of ARVs, T-72 Tanks and BMP-II will enhance the service life of equipment, ensuring readiness and operational effectiveness of the Indian Army,” it said.

“For the Indian Coast Guard (ICG), AoN was accorded for the procurement of Electro-Optical/Infra-Red system for Dornier aircraft. The procurement will assist in enhancing the efficacy of maritime surveillance capability of the ICG,” the statement noted.

The DAC is the key defence body that grants Acceptance of Necessity (AoN) for all major capital procurements. Grant of AoNs is the first step in the defence procurement process. However, obtaining an AoN does not guarantee a final order.