Defence Stocks Soar as DAC Approves Rs 54,000 Crore Acquisition Plans

Defence stocks witnessed a significant surge, with companies like

ynamics Ltd (BDL) and stan Aeronautics Ltd (HAL) climbing up to 6%, following the Defence Acquisition Council's (DAC) approval of acquisition proposals worth Rs 54,000 crore. This rally propelled the Nifty India Defence index upwards, extending its gains for the seventh consecutive session. The Ministry of Defence announced on March 20th that the DAC had granted Acceptance of Necessity (AoNs) to eight proposals, aimed at bolstering the Indian armed forces' capabilities. Key approvals include: T-90 Tank Engine Upgrade: The procurement of 1,350 HP engines to upgrade the existing 1,000 HP engines for the Indian Army's T-90 tanks, enhancing battlefield mobility, particularly in high-altitude areas. Varunastra Torpedoes: The acquisition of indigenously developed Varunastra Torpedoes (Combat) for the Indian Navy, strengthening its anti-submarine warfare capabilities. Airborne Early Warning & Control (AEW&C) Aircraft Systems: The procurement of AEW&C systems for the Indian Air Force, enhancing its combat potential and situational awareness. Furthermore, the DAC approved measures to streamline the capital acquisition process, aiming for faster and more efficient procurement. The government emphasized that 2025 will be designated as the "Year of Reforms" within the Ministry of Defence, signifying its commitment to modernizing and strengthening the nation's defense infrastructure.