India clears Rs 3.25 lakh crore deal for 114 Rafale jets, largest-ever defence acquisition

The clearance was granted by the Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, which accorded Acceptance of Necessity (AoN) to the programme ahead of French President Emmanuel Macron’s forthcoming visit to New Delhi.

According to NDTV's sources, 18 of the 114 aircraft will be procured off-the-shelf from French defence manufacturer Dassault Aviation, while the remaining 96 jets will be manufactured in India under a strategic partnership model.

The deal is expected to include the transfer of advanced fighter aircraft technology and is being positioned as a major boost to the government’s ‘Make in India’ initiative in the defence sector.

The proposal will now move to the Cabinet Committee on Security (CCS), chaired by Prime Minister Narendra Modi, for final approval.

The Rafale procurement forms part of a broader set of approvals worth approximately Rs 3.60 lakh crore cleared by the DAC for the armed forces.

For the IAF, AoN was also granted for Combat Missiles designed to enhance long-range, high-accuracy strike capability, and for an Air-Ship Based High Altitude Pseudo Satellite (AS-HAPS) platform.

The AS-HAPS system is intended to provide persistent Intelligence, Surveillance and Reconnaissance (ISR), along with electronic intelligence, telecommunications and remote sensing support for military applications.

The Multi Role Fighter Aircraft (MRFA) programme, under which the Rafale jets have been identified, is aimed at strengthening the IAF’s ability to undertake air dominance operations across the full spectrum of conflict.

For the Army, the council cleared the procurement of Vibhav anti-tank mines, which are intended to form part of an anti-tank obstacle system to delay advancing enemy mechanised forces, reports said.

The Navy received AoN for a 04 MW Marine Gas Turbine-based Electric Power Generator under the Make-I category of the Defence Acquisition Procedure 2020.

The DAC also cleared the acquisition of additional P-8I Long Range Maritime Reconnaissance Aircraft, which will enhance anti-submarine warfare capability, maritime surveillance and maritime strike functions.

For the Indian Coast Guard, approval was granted for the procurement of Electro-Optical and Infra-Red systems for Dornier aircraft, strengthening maritime monitoring capabilities.

The Indian Air Force currently operates 36 Rafale aircraft across two squadrons, with the final delivery of the ‘C’ variant completed in December 2024.

Separately, India has ordered 26 Rafale ‘M’ naval variant aircraft for the Indian Navy in a deal valued at Rs 63,000 crore.

These aircraft will operate from the aircraft carriers INS Vikrant and INS Vikramaditya and include provisions for maintenance, logistics support and personnel training under a Maintenance, Repair and Overhaul framework.