Defence ministry approves Rs 2,236 crore (USD 300 million) proposal for satellite - Broadsword by Ajai Shukla - Strategy. Economics. Defence.

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Tuesday, 23 November 2021

Defence ministry approves Rs 2,236 crore (USD 300 million) proposal for satellite

By Ajai Shukla

The Defence Acquisition Council (DAC) – the Ministry of Defence’s (MoD’s) apex decision-making body for capital acquisitions, cleared on 23rd November 2021 the design, development and launching of a satellite to support the Indian Air Force’s (IAF’s) software defined radio (SDR) networks.


The DAC, chaired by Defence Minister Rajnath Singh, essentially granted preliminary permission – or accorded Acceptance of Necessity (AoN) in the MoD’s procurement lingo – for the IAF to spend Rupees 2,236 crore (USD 300 million) on the launch of a GSAT-7C satellite and create ground hubs for the IAF’s Software Defined Radios (SDRs).


The project envisages the complete design, development and launching of the satellite in India. It is what the Defence Acquisition Procedure of 2020 (DAP-2020), the MoD’s capital procurement rulebook categorizes as a “Buy – Indian  Designed, Developed and Manufactured”, or Buy – IDDM procurement. 


This is amongst the highest capital procurement categories, supporting as it does the “Atmanirbhar Bharat” (self-reliant India) initiative – a favourite slogan of Prime Minister Narendra Modi.


The satellite will enhance the IAF’s ability to communicate beyond the Line of Sight (LoS) in a secure mode.

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