Development work for Akash Mk-2 variant has begun, since recently Ministry of Defence officially granted funds and permission for its further development. Lately Akash Mk-1 has successfully demonstrated its ability in recently held user trials and Air force and Indian army has placed orders for procurement of Akash Sam Batteries.
Work on improvement of Akash SAM has been underway for a decade now and newer technology
has been developed and DRDO is confident to field and test new Akash Mk-2 within  3 year period, major changes that Akash MK-2 will have is the range of missile, Army and Air force wants Akash MK-2 to have range of 40 to 60 km from its current range (Akash MK-1) of just 25 km. for that DRDO has been working on using better composite booster with lengthened booster section to achieve the desired range .According to sources DRDO will not have much difficulty in extended range of the Missile system but DRDO will have other set of problems in support systems.
Akash MK-1 is guided by phased array fire control radar called Rajendra BSR (Battery Surveillance Radar) which is PESA radar, while Akash Mk-2 will have a Rajendra derivative AESA radar to perform the same role, AESA radar will give it better tracking, and engagement functions.  Work on AESA variant has begun and almost nearing completion, DRDO is also working on an AESA variant of Rajendra to be used as Weapons locating Radar (WLR); recently developed Rajendra WLR is based on PESA technology.