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A novel formulation of sliding mode control (SMC) based proportional navigation (PN) guidance law is presented. Unlike conventional SMC-based guidance laws, the law presented here does not need any knowledge of bounds of target acceleration. The target acceleration is estimated using the so-called inertial delay control (IDC). Closed-loop stability for the guidance loop is established. Simulations are carried out by considering highly-maneuvering targets and constant as well as varying missile velocity and the results are presented to demonstrate the effectiveness of the proposed formulation.