Rafale deal to Akash missiles: 6 major takeaways from the Defence Acquisition Council meet

NEW DELHI: The defence ministry's top acquisition council, which met under the chairmanship of Defence Minister Manohar Parrikar, cleared some major procurement deals in a bid to further boost the defence sector.

From Mi17-V5 choppers to progress on the Rafale deal, we take a look at six major takeaways from the meet:

> Rafale fighter jet: Signaling that the deadlock in talks over the purchase of 36 Rafale fighter jets has been resolved, the Defence Acquisition Council expressed satisfaction at the progress made and asked the Indian negotiating team to "go ahead" regarding the deal.

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Indicating that a deadlock over pricing and an offset obligation for the deal may have been broken, a senior official said that after being briefed on the progress of negotiations, the Indian team has been given a 'go ahead to continue' discussions.

While it is still not clear what the ‘go ahead’ entails, a dilution in the Indian stand on 50% offsets for the deal is likely if the price decided during PM Modi’s Paris trip in April has to be honoured.

India and France will now continue negotiations on the deal to supply 36 Rafale fighters. French defence minister Jean-Yves Le Drian may visit India shortly for a formal agreement.

> Mi17-V5 choppers: DAC also cleared a Rs 6,966 crore proposal to acquire 48 Mi17-V5 choppers from Russia. The hardy, medium-lift choppers have been a huge asset for the air force.




The new choppers, which will serve in terrains ranging from the desert to high-altitude locations along the China and Pakistan border, will be added to the IAF fleet of 139 Mi 17 V5s that form the backbone of the IAF transport operations.

> T72 and T90 tanks: The council gave nod to a Rs 490 crore proposal for the army to acquire 102 short-span bridges that would be carried on 8X8- wheel trucks besides 120 pieces of anti-tank mine trawls from Russia for the T72 and T90 tanks.


In pic: T 90 tanks

> Akash missiles: Purchase of an additional seven squadrons of Akash missiles worth Rs 4,790 crore was cleared for air force.




Induction of the system, which has an indigenous content of 96 per cent will also benefit a number of small and medium scale industries that have been participating in the programme.

The Akash programme, which was approved for procurement first in 2010, is a major Make in India initiative with the air force cleared to progressively induct 45 firing units over the next few years.

> ATC radars: The top body for defence acquisitions also cleared IAF's proposal to set up four new ATC radars at Rs 228 crore. Three of these radars would be based in the crucial eastern sector, the sources said.

> Chetak helicopters: The navy's proposal to acquire eight Chetak helicopters from state-run HAL, too, was cleared. The force also got the clearance for nine tugs at Rs 300 crore. Go-ahead was also given to navy for dockyard repair facility for radars and Electronic Warfare System at Rs 235 crore.




However, the DAC did not take a decision on the navy's proposal to acquire over 100 utility helicopters. Neither did it take a decision on going ahead with P75I submarine tenders worth over Rs 60,000 crore.