DAC Grants AoN For Development And Purchase of Air Cushion Vehicles Under A ₹2.38 Lakh Crore Proposal For Coast Guard

The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, has approved Acceptance of Necessity (AoN) for the indigenous development and procurement of Air Cushion Vehicles (ACVs), marking a pivotal step in India's naval modernisation.
This decision falls under a colossal ₹2.38 lakh crore proposal, one of the largest in recent defence acquisition history, aimed at enhancing amphibious warfare capabilities amid rising maritime tensions in the Indian Ocean Region.
ACVs, also known as hovercraft, operate on a cushion of air, enabling them to traverse shallow waters, beaches, and land with remarkable speed and versatility. The Indian Navy has long identified gaps in its amphibious assault fleet, particularly for rapid troop deployment and logistics in contested littoral zones. This AoN addresses those deficiencies head-on, prioritising self-reliance through domestic design and manufacturing.
The proposal encompasses both development and outright purchase phases, with a strong emphasis on 'Buy (Indian-IDDM)' categories—Indian Design, Development, and Manufacturing. This aligns with the Atmanirbhar Bharat initiative, mandating at least 60% indigenous content. Shortlisted private sector players, including Tata Advanced Systems and L&T Defence, are poised to lead prototyping, drawing on prior collaborations with DRDO's Naval Materials Research Laboratory.
Historically, India's ACV experience dates back to the indigenous Abhay-class hovercraft trials in the 1990s, which faced challenges in endurance and payload. Lessons from those programs inform the new specification: vehicles capable of carrying 100-150 troops or 10-15 tons of cargo at speeds exceeding 50 knots, with all-weather operability and integration of indigenous sensors like the BEL-developed AESA radar.
Geopolitically, this acquisition responds to China's expanding amphibious presence in the South China Sea and Indian Ocean, exemplified by its Type 726 LCAC fleet. For India, ACVs will augment the Navy's landing platform docks (LPDs) such as INS Jalashwa and the upcoming Project 18 destroyers, enabling swift multi-domain operations from Andaman and Nicobar bases to the Lakshadweep chain.
The ₹2.38 lakh crore figure covers an estimated 50-60 ACVs over a decade, including R&D funding of ₹15,000 crore. This dwarfs previous naval buys like the ₹21,000 crore P-75I submarine deal, underscoring the scale. Funding will leverage the Defence Budget's capital outlay, with tri-service synergy via the Chief of Defence Staff ensuring interoperability with Army marine brigades.
Indigenisation targets include composite hulls from HAL composites division, gas turbine engines co-developed with GTRE, and electronic warfare suites from Bharat Electronics Limited. Private firms like Mazagon Dock and GRSE will handle serial production, creating over 5,000 high-skill jobs in coastal shipyards from Visakhapatnam to Kochi.
Key obstacles to navigate include technology maturation for high-speed skirt materials resistant to tropical corrosion and integration of loitering munitions for self-defence. DRDO's Hyderabad unit leads simulations, with sea trials slated for 2028. International tie-ups, potentially with Russia's Almaz Shipbuilding, remain under consideration for licensed tech transfer without compromising IDDM norms.
This DAC nod signals a broader amphibious renaissance, complementing the Multi-Role Support Vessel (MRSV) program. As Indo-Pacific rivalries intensify, these ACVs will project power, deter aggression, and secure sea lines vital for 80% of India's oil imports. Delivery timelines hinge on streamlined DPP-2020 procedures, with first units expected by 2030.
Stakeholders hail the move as transformative, with Navy Chief Admiral Hari Kumar emphasising its role in 'mission-based deployments'. Critics, however, flag execution risks given past delays in projects like the Kamorta-class corvettes. Success here could redefine India's blue-water ambitions, cementing maritime supremacy in a multipolar world.
Agencies
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