NEW DELHI: The government is set to positively consider the Indian Navy’s proposal for construction of a second aircraft carrier at a cost of around Rs 40,000 crore, in a major move that comes against the backdrop of rising concerns over China’s increasing forays into the Indian Ocean region.

Top government sources said that the Defence Procurement Board (DPB), a key body of the defence ministry, has accorded in-principle approval to the ambitious proposal signalling the government’s readiness to go for the second indigenous aircraft carrier, to be known as IAC II.

The mega procurement proposal will shortly be placed before the Defence Acquisition Council (DAC), the defence ministry’s top body on procurement, they said.

The DAC, headed by Defence Minister Rajnath Singh, is likely to meet on Thursday and it is learnt that the proposal for the IAC-II will be examined by it. The sources said the Navy has proposed that specifications of the IAC II should be similar to the INS Vikrant (IAC I) as it will cut costs and time for construction of the aircraft carrier.

The DAC is also likely to consider the Indian Air Force’s proposal for procurement of an additional batch of 97 Tejas Mark-1A aircraft at a cost of Rs 1.15 lakh crore, the sources said. The Navy has been making a strong push for having the IAC-II with a displacement of 45,000 tonnes which is estimated to cost close to Rs 40,000 crore with the envisaged specifications.

The sources said the IAC II will be kind of a repeat order of the IAC I. At present, India has two aircraft carriers -- INS Vikramaditya and INS Vikrant.