Defence ministry 'shelves' two acquisition projects worth Rs 587 crore

The defence ministry has shelved two acquisition projects involving Rs 587 crore, while clearing almost all long-pending procurement proposals in the last few months, officials sources said today.

The two proposals, which were shelved, were earlier accorded Acceptance of Necessity (AoN).

AoN is an in-principle approval for any procurement.


In one case, it was due to its non-utility in the changed circumstances, and in another case it was due to indigenously developed substitute being cheaper than the imported article, a source said, explaining the reasons behind the shelving.

The sources said almost all the pending proposals for procurement of various weapons and military platforms were cleared by the Defence Acquisition Council (DAC) of the ministry in the last few years.

Defence Minister Nirmala Sitharaman has been holding meetings of the DAC every fortnight with aim to expedite the clearance of various procurement proposals of the armed forces.

The DAC is the highest decision-making body of the defence ministry on procurement.