The Ministry had put on hold procurement of Barak-I missiles because of a CBI probe in the case since 2006.
It also cleared a proposal for acquiring 2 deep submarine rescue vessels for the Navy while approving the indigenous construction of the 16 anti-submarine warfare shallow water craft at the cost of Rs 13,000 crore.
The Defence Acquisition Council (DAC) headed by Defence Minister AK Antony cleared the Rs 880 crore proposal for 262 Barak-I missiles, which are expected to be put on the aircraft carrier INS Virat. It is also the chosen air defence system for the new aircraft carrier INS Vikramaditya, defence sources said.
The CBI case in this regard is reportedly in final stages and the investigative agency is reportedly going to soon file a closure report in it.
The Navy had made a strong case for the 9-km range air defence missile and had told the Ministry that it was left with only around 150 of these weapons. In the last DAC, the Ministry had formed an 'Independent Group' to take a final call on the issue.