Defence Acquisition Council Clears ₹2.12 Lakh Crore Procurement Proposals

Defence Acquisition Council Latest News

The Defence Acquisition Council (DAC) recently accorded Acceptance of Necessity (AoN) for capital acquisition proposals worth approximately ₹2.12 lakh crore for the three services, with about 82% of the procurements to be sourced from the domestic industry.

About Defence Acquisition Council

• It is the highest decision-making body of India’s Ministry of Defence on procurement.
• Main Objective: To ensure expeditious procurement of the approved requirements of the armed forces in terms of capabilities sought and time frame prescribed by optimally utilizing the allocated budgetary resources.
• Formation: It was formed after the Group of Minister’s recommendations on ‘Reforming the National Security System’, in 2001, post-Kargil War (1999).
• Composition:
  • The defence minister is the chairman of DAC. 
  • Its members include senior civil and military leaders of the Ministry of Defence, among them the Chief of Defence Staff (CDS) and chiefs of the Army, Navy, and Air Force; the Defence Secretary; and other senior officials responsible for finance, production, and acquisition. 
• Functions:
  • Give in principle approval of a 15-year Long Term Integrated Perspective Plan (LTIPP) for defence forces.
  • Accord of acceptance of necessity to acquisition proposals. 
  • Categorisation of the acquisition proposals relating to ‘Buy’, ‘Buy & Make’, and ‘Make’. 
  • Look into issues relating to single vendor clearance.
  • Take decisions regarding ‘offset’ provisions in respect of acquisition proposals above Rs 300 crore.
  • Take decisions regarding the Transfer of Technology under the ‘Buy & Make’ category of acquisition proposals. 
  • Field trial evaluation.
• The categorisation decisions taken by the DAC are especially significant, because they influence whether contracts flow to Indian designers and manufacturers or to foreign suppliers.  
• Through its approvals, the DAC effectively sets the direction of India’s military modernisation.

News: TH

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