Defence Acquisition Council

Source:  LM

Context: The Defence Acquisition Council (DAC) approved capital acquisition proposals worth ₹1.05 lakh crore, aimed at enhancing India’s defence capabilities through 100% indigenous sourcing.

About Recent Approvals for Defence Procurement:

  • ₹1.05 Lakh Crore Indigenous Proposals Cleared:
    • DAC approved 10 capital acquisition proposals under the Buy (Indian-IDDM) category.
  • Naval Procurement Plans:
    • AoN accorded for Moored Mines, Mine Counter Measure Vessels, Submersible Autonomous Vessels, and Super Rapid Gun Mounts.
  • ₹30,000 Cr QR-SAM Procurement in Pipeline:
    • MoD likely to finalize procurement of 3 regiments of Quick Reaction Surface-to-Air Missiles (QR-SAM) to boost Indian Army’s air defence.
  • Biggest-Ever Helicopter Deal:
    • Cabinet Committee on Security cleared ₹62,700 crore deal to procure 156 Light Combat Helicopters (Prachand) from Hindustan Aeronautics Ltd (HAL).

About Defence Acquisition Council (DAC):

  • It is the highest decision-making body in the Ministry of Defence for procurement matters.
  • Established: Formed in 2001, following the Group of Ministers Report on National Security reforms post Kargil War (1999).
  • Ministry: Under the Ministry of Defence, Government of India.
  • Composition:
    • Chaired by the defence minister.
    • Includes Chief of Defence Staff, and the Chiefs of Army, Navy, and Air Force.
  • Aim: To ensure time-bound, cost-effective, and capability-driven procurement using allocated budget optimally.
  • Key Functions:
    • Approves Acceptance of Necessity (AoN) for capital acquisition proposals.
    • Gives in-principle nod to the Long-Term Integrated Perspective Plan (LTIPP) spanning 15 years.
    • Categorises acquisitions under Buy (Indian), Buy & Make, and Make categories.
    • Decides on Transfer of Technology (ToT) and offsets for deals over ₹300 crore.
    • Resolves single vendor procurement issues.
    • Oversees field trial evaluations and performance assessments.