Add Zee Business as a Preferred Source
DAC clears Rs 79,000 crore defence deals; defence stocks Cyient DLM, HAL, BDL slip
Rajnath Singh-chaired council approves key acquisitions for Army, Navy and Air Force; defence stocks trade lower.
)
The Defence Acquisition Council (DAC) on Monday cleared defence procurement proposals.
Written By: Shweta Birendra Shukla
Updated: Mon, Dec 29, 2025
05:09 PM IST
05:09 PM IST
New Delhi
The Defence Acquisition Council (DAC) on Monday cleared defence procurement proposals worth around Rs 79,000 crore, aimed at significantly enhancing the operational capabilities of the Indian Armed Forces.
DAC accords AoN for Rs 79,000 crore defence proposals
At its meeting held on December 29, 2025, the DAC granted Acceptance of Necessity (AoN) for a range of capital acquisition proposals across the Army, Navy and Air Force, covering advanced weapon systems, surveillance platforms and critical support equipment.
Indian Army to get loiter munitions, radars and guided rockets
For the Indian Army, the DAC approved procurement of Loiter Munition Systems for artillery regiments, Low Level Light Weight Radars, Long Range Guided Rocket Ammunition for the Pinaka Multiple Launch Rocket System (MRLS), and the Integrated Drone Detection & Interdiction System (IDD&IS) Mk-II.
TRENDING NOW
According to the government, loiter munitions will enable precision strikes on tactical targets, while the radars will improve detection and tracking of small, low-flying unmanned aerial systems. The long-range guided rockets will significantly enhance the range and accuracy of the Pinaka MRLS, enabling effective engagement of high-value targets. The upgraded drone detection and interdiction system will provide enhanced protection to vital Army assets in tactical battle areas and hinterland regions.
Navy to induct tugs, secure radios and HALE drones
For the Indian Navy, AoN was accorded for the procurement of Bollard Pull (BP) Tugs, High Frequency Software Defined Radios (HF SDR) Manpack, and leasing of High Altitude Long Endurance (HALE) Remotely Piloted Aircraft Systems (RPAS).
The BP Tugs will assist naval ships and submarines during berthing, unberthing and manoeuvring in confined harbour waters. The HF SDR systems are expected to strengthen long-range, secure communications during boarding and landing operations. Meanwhile, the HALE RPAS will provide persistent intelligence, surveillance and reconnaissance (ISR) and bolster maritime domain awareness across the Indian Ocean Region.
IAF approvals include Astra Mk-II, SPICE-1000
For the Indian Air Force, the DAC approved procurement of the Automatic Take-off and Landing Recording System, Astra Mk-II beyond-visual-range air-to-air missiles, Full Mission Simulator for the Light Combat Aircraft (LCA) Tejas, and SPICE-1000 long-range precision guidance kits.
The Automatic Take-off and Landing Recording System is expected to plug gaps in aerospace safety by enabling high-definition, all-weather recording of aircraft operations. The Astra Mk-II missiles, with enhanced range, will improve the IAF’s ability to neutralise enemy aircraft from long stand-off distances. The Full Mission Simulator will enhance pilot training in a cost-effective and safe manner, while SPICE-1000 kits will strengthen long-range precision strike capability.
Defence stocks slip despite big-ticket approvals
Despite the large-scale clearances, defence stocks traded lower on Monday. Shares of key defence players such as Bharat Electronics Ltd., Hindustan Aeronautics Ltd., Bharat Dynamics Ltd., Data Patterns Ltd. and Astra Microwave Products Ltd. declined following the DAC meeting.
The Nifty India Defence index was down about 2.9 per cent over the past month, though it has gained nearly 20 per cent so far in 2025. Around 2:40 pm on Monday, as many as 13 of the 18 stocks in the index were trading in the red, with Cyient DLM emerging as the top laggard, down around 1.8 per cent.
On a year-to-date basis, five stocks in the Nifty India Defence index have delivered negative returns. Garden Reach Shipbuilders & Engineers remains the top performer in 2025 with gains of about 55 per cent, while Zen Technologies has been the worst performer, declining around 44 per cent.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
Shweta Birendra Shukla
Shweta Birendra Shukla
RECOMMENDED STORIES
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
RELATED NEWS
CAT overturns DG BrahMos appointment, cites arbitrariness in DRDO selection
Secured borders, maritime strength, and an innovation-led defence push — India is accelerating self-reliance, says Rajnath Singh
Thiruvananthapuram Airport to suspend flights for over an hour on these dates: Know the affected timings
Xi faces growing challenges within Chinese military as key generals absent from party meeting
Putin likely to visit India in December, defence and trade talks on agenda
