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AK-203 deal approved

  • IASbaba
  • November 24, 2021
  • 0
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AK-203 deal approved

Part of: Prelims and GS-III – Defence and security

Context The Defence Acquisition Council (DAC) has approved the long-pending deal for the manufacture of 6.71 lakh AK-203 Russian assault rifles in India.

Key takeaways 

  • The two countries had signed an Inter-Governmental Agreement (IGA) in 2019. 
  • A joint venture was later set up at Korwa in Uttar Pradesh for manufacturing the rifles.
  • Igla-S Very Short Range Air Defence (VSHORAD) systems may receive clearance soon.
  • A proposal for the procurement of the GSAT-7C communication satellite for the Indian Air Force (IAF) has also been approved.
    • Advantage: Induction of the GSAT-7C satellite and ground hubs for Software Defined Radios (SDRs) will enhance the ability of the armed forces to communicate beyond Line of Sight (LoS).

What is the Defence Acquisition Council? 

  • It is the highest decision-making body in the Defence Ministry.
  • It decides new policies and capital acquisitions for the three services (Army, Navy and Air Force) and the Indian Coast Guard.
  • Chairman: Minister of Defence 
  • It was formed, after the Group of Ministers recommendations on ‘Reforming the National Security System’, in 2001, post Kargil War (1999).

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