India Ramps Up Defence with Rs 1.2 Lakh Crore Boost for Army and Navy



India Ramps Up Defence with Rs 1.2 Lakh Crore Boost for Army and Navy
The government is on the verge of approving several significant defense projects, collectively valued at Rs 1.2 lakh crore. The Defence Acquisition Council (DAC) is set to meet to review and potentially greenlight these high-profile initiatives. According to defense sources, the DAC is anticipated to approve the issuance of a tender worth around Rs 70,000 crore to Indian shipyards, including those in the private sector, as part of the 'Make in India' initiative.
A major project under consideration is the Indian Navy’s Project 17 Bravo, which focuses on the construction of seven state-of-the-art stealth frigates. This initiative, valued at about Rs 70,000 crore, is designed to boost the Navy's capabilities with the most advanced warships ever built in India. Mazagon Dockyards Limited (MDL) and Garden Reach Shipbuilders and Engineers (GRSE) are the frontrunners for this project.
The tender for the Navy’s Project 17 Bravo will be likely directed at Category A shipyards, including MDL, GRSE, Goa Shipyard Limited, and Larsen & Toubro. The aim is to expedite the project by potentially splitting the order between two shipyards. The MDL and GRSE are currently engaged in constructing frigates under Project 17A, with MDL handling four and GRSE three.
The Indian Army is also planning a significant upgrade to its armored forces, seeking to acquire 1,700 Future Ready Combat Vehicles (FRCVs) to replace its aging fleet of Russian-origin T-72 tanks. This project, estimated to cost over Rs 50,000 crore, aims to modernize the Army’s armored vehicles, including tanks and infantry combat vehicles.
The Army is focusing on enhancing its operational readiness in various terrains, including high altitudes and deserts. Defence Ministry sources revealed, "Defence Ministry sources told India Today TV that the Defence Acquisition Council (DAC) is expected to clear projects worth over Rs 1.3 lakh crore in the meeting scheduled to be held on Tuesday".
For the Army’s FRCV project, the tanks will be manufactured under the Make-1 procedure of the Defence Acquisition Procedure, with more than 60 percent of the components being sourced domestically. Companies like Bharat Forge and Larsen & Toubro are expected to compete for the tender. Additionally, the Army is likely to propose the procurement of around 100 BMP-2 infantry combat vehicles during the high-level meeting.
This comes amid China's escalation of its "string of pearls" policy around India, transitioning from economic maneuvers to direct military initiatives. Beijing has upgraded regional infrastructure such as airports and ports for military applications and deployed surveillance assets to counter India. These efforts include underwater terrain mapping in the Maldives, enhanced electronic surveillance in the Bay of Bengal, and the deployment of various naval vessels.
Furthermore, China has extended its naval influence in Sri Lanka by deploying research vessels and is constructing an airstrip on the Great Coco Island in Myanmar, which is slated to be operational by February 2025. The Great Coco Island is located near India’s Andaman and Nicobar Islands, home to several strategic naval and air force bases. Reports suggest that this island has already been utilized as a listening post against India. China’s plans also include the permanent deployment of research vessels near these islands.
Additionally, a joint naval exercise between China and Pakistan is scheduled for January next year near India's maritime boundary in the Arabian Sea. At the same time, China has upgraded its People’s Liberation Army Navy (PLAN) base in Djibouti from a basic turnaround and refueling station to a facility equipped for repair and refurbishment operations.