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DAC Clears ₹3.25 Lakh Crore Deal for 114 Rafale Jets

  • By Thetripurapost Desk, New Delhi
  • Feb 12, 2026
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India’s Defence Acquisition Council (DAC) on Thursday approved a proposal to procure 114 Rafale fighter jets from France in a deal estimated at approximately ₹3.25 lakh crore, marking the country’s largest-ever defence acquisition.

Under the agreement, French aerospace major Dassault Aviation will deliver 18 aircraft in fly-away condition, while the remaining 96 jets will be manufactured in India with an indigenous component share of nearly 60 percent. The proposal will now be forwarded to the Cabinet Committee on Security (CCS) for final clearance. The agreement is expected to be formalised during French President Emmanuel Macron’s scheduled visit to India from February 17 to 19.

The proposal had earlier received approval from the Defence Acquisition Board on January 16. According to the Ministry of Defence, the induction of the additional Rafale aircraft will significantly enhance India’s aerial combat capabilities and strengthen border defence preparedness.

The DAC, chaired by Defence Minister Rajnath Singh, also cleared several other high-value defence procurements. These include the acquisition of six Boeing P-8I long-range maritime surveillance aircraft for the Indian Navy, advanced combat missile systems, and airship-based high-altitude pseudo-satellite platforms designed to improve surveillance and communication capabilities. The cumulative value of these defence proposals stands at approximately ₹3.60 lakh crore.

Additionally, the Army received approval for the overhaul and upgrade of multiple combat platforms, including anti-tank mine systems (Vibhav), Armoured Recovery Vehicles, T-72 tanks, and Infantry Combat Vehicles. The Navy secured clearance for the procurement of 4 MW marine gas turbine-based electric power generators and additional reconnaissance aircraft.

The DAC also approved the procurement of advanced electro-optical and infrared surveillance systems for Dornier aircraft operated by the Indian Coast Guard, which is expected to substantially enhance maritime domain awareness and coastal surveillance operations.

Separately, the Ministry of Defence signed a ₹2,312 crore contract with Hindustan Aeronautics Limited (HAL) for the procurement of eight Dornier 228 aircraft for the Coast Guard under the “Buy (Indian)” category. These aircraft will be equipped with advanced operational systems to further strengthen maritime security.

In the Union Budget for 2026–27, the Ministry of Defence has been allocated ₹7.8 lakh crore, representing 14.67 percent of the total national budget. Of the ₹2.19 lakh crore earmarked for military modernisation, ₹1.85 lakh crore has been designated for capital acquisitions, reflecting an increase of nearly 24 percent compared to the previous fiscal year.

The Rafale procurement is being executed under the “Make in India” initiative, with Dassault Aviation collaborating with an Indian partner for local production. The company recently increased its stake in Dassault Reliance Aerospace Limited (DRAL) from 49 percent to 51 percent, with Reliance Infrastructure continuing as a joint venture partner.

Dassault will integrate Indian-origin weapons, missile systems, and ammunition into all 114 aircraft and will provide secure data-link technology to ensure seamless integration with India’s radar and sensor networks. The company will also facilitate technology transfer for airframe manufacturing, with engine manufacturer Safran and avionics firm Thales participating in the programme. Following completion of the technology transfer process, the aircraft are expected to achieve an indigenous content level of 55 to 60 percent.

The Indian Air Force had formally submitted its requirement for 114 additional Rafale aircraft to the Ministry of Defence in September 2025. Currently, the Air Force operates 36 Rafale jets, while the Indian Navy has placed orders for 26 carrier-based variants of the aircraft.

Training and maintenance, repair, and overhaul (MRO) infrastructure for the Rafale fleet is already operational at Ambala Air Force Station, enabling the Air Force to induct two additional squadrons—comprising approximately 36 to 38 aircraft—without significant logistical delays.