India clears Rs 2.38 lakh crore defence deals, approves S-400 systems and transport aircraft

India has approved defence acquisitions worth ₹2.38 lakh crore, including five S-400 missile systems from Russia, 60 medium transport aircraft, remotely piloted strike drones, Sukhoi engine overhaul, and Dhanush guns.

New Delhi: In a major defence acquisition push, India on Friday cleared procurement of a fresh batch of five S-400 missile systems from Russia and 60 medium transport aircraft as well as a few other military platforms at a total cost of Rs 2.38 lakh crore to boost combat prowess of the defence forces.

The procurement proposals were approved by the Defence Acquisition Council (DAC), the defence ministry’s highest decision-making body on military procurement. It was chaired by Defence Minister Rajnath Singh.

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While the defence ministry confirmed that the DAC cleared the procurement of S-400 missile systems and military transport aircraft, it did not specify the exact quantities. However, authoritative sources said the approval covers five S-400 units and 60 transport aircraft.

The IAF is procuring the military transport aircraft to replace its aging fleet of Soviet-era AN-32 and IL-76 planes. The top contenders for the multi-billion deal are Lockheed Martin’s C-130 J Super Hercules, Embraer’s KC-390 aircraft, and Airbus Defence and Space’s A-400M plane. The IAF already operates 12 C-130 J Super Hercules.

It is learnt that 12 aircraft will be procured in fly-away condition while 48 will have to be produced in India.

The decision to procure an additional batch of five S-400 air defence missile systems came months after their capability was proved during Operation Sindoor. The missile system played a crucial role in India’s dominance over Pakistan during the May 7-10 hostilities last year.

In October 2018, India had signed a USD 5 billion deal with Russia to buy five units of S-400 air defence missile systems, notwithstanding a warning by the US that going ahead with the contract may invite US sanctions under the provisions of Countering America’s Adversaries Through Sanctions Act (CAATSA).

Three squadrons have already been delivered. Sources said India is not expecting any possible hindrance from US sanctions as the new procurement will be a “follow on” order of the previous procurement.

The DAC also green-lighted procurement of remotely piloted ‘Strike aircraft’ and overhaul of Sukhoi-30 aero engines as part of enhancing the combat capabilities of the Indian Air Force (IAF) besides approving acquisition of Dhanush gun system for the Indian Army.

In the financial year 2025-26, approval for 55 proposals amounting to Rs 6.73 lakh crore has been accorded by the DAC. Moreover, capital procurement contracts for 503 proposals amounting to Rs 2.28 lakh crore have been signed in the current fiscal year.

Both the quantum of approval given and capital contracts signed, so far, has been the highest in any given financial year, according to the defence ministry.

The DAC granted Acceptance of Necessity (AoN) or initial approval for various proposals worth an estimated cost of about Rs 2.38 lakh crore, the ministry said in a statement on Friday’s decisions.

“For the Indian Air Force, proposals were cleared for the procurement of medium transport aircraft, S-400 long range surface-to-air missile system, remotely piloted Strike aircraft and overhaul of Su-30 Aero engine aggregates,” it said.

The induction of medium transport aircraft by replacing the transport fleet of AN32 and IL76 will meet the strategic, tactical and operational airlift requirements of the services, it said.

“The S-400 system will counter enemy long-range air vectors targeting vital areas, while the remotely piloted Strike aircraft will enable undertaking offensive counter and coordinated air operations, also providing stealth Intelligence, surveillance and reconnaisance activities,” the ministry said.

“The overhaul of Su-30 aero engine and its aggregates will increase the service life of the aircraft and fulfil the operational requirement of the Air Force,” it said.

For the Indian Army, approval was accorded for the air defence tracked system, armoured piercing tank ammunition, high capacity radio relay, Dhanush gun system and runway independent aerial surveillance system, the ministry said.

The air defence tracked system will provide real time air defence control and reporting capability, while the high capacity radio relay will provide “reliable and fail proof communication”, it said.

The Dhanush gun system will enhance the artillery’s capabilities to engage targets at longer ranges in all terrains with enhanced lethality and accuracy.

“The runway independent aerial surveillance system will provide surveillance capabilities to the Army units, with the Armoured Piercing Tank Ammunition enhancing the lethality of anti-tank ammunition,” the ministry said.

For the Indian Coast Guard, approval was accorded for heavy duty air cushion vehicles.

These vehicles will be used for multipurpose maritime coastal operational roles, including high-speed coastal patrolling, reconnaissance, search and rescue operations, rendering assistance to ships and carrying personnel and stores including logistics.