In a volley of decision giving a mega boost to the Make in India programme, government on Wednesday approved proposals to build a second indigenous aircraft carrier, replacement of ageing Avro transport fleet, and making Russian Kamov helicopters in India.
In a meeting of the Defence Acquisition Council (DAC) chaired by Defence Minister Manohar Parrikar, government also approved arming six of Navy's warships with BrahMos missiles.
The government cleared the lone bid of Airbus-TATA consortium for replacing Indian Air Force's fleet of Avro transport aircraft.
The ageing fleet of 56 Avro aircraft with be replaced with Airbus C-295.
An amount of Rs.119.29 billion was allotted for this purpose, where 16 C-295 planes will be purchased in fly away condition, while 40 will be made in India.
The DAC also cleared the proposal to convert two Boeing 777-300 ER for VVIP travel, defence sources said.
For the second aircraft carrier, Rs.30 crore was allotted for preparations.
The DAC also gave nod to arming India's three Delhi-class destroyers, and three Talwar class frigates with BrahMos supersonic missiles at a cost of Rs. 27 billion.
It also approved buying 145 M777 light guns from US under foreign sales for Rs. 29 billion.
The government also approved Russian proposal for manufacturing Kamov Ka-226T light helicopters in India. A total of 197 helicopters will be built.
Other proposals cleared include final nod for some more financial clauses in follow-on order for 36 Pilatus basic trainer planes for the Indian Air Force and a proposal for modernisation of Kochi Naval Ship Repair Yard worth Rs.3 crore.
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