Defence Acquisition Council (DAC)

Defence Acquisition Council (DAC)

Context

The Defence Acquisition Council (DAC) has cleared defence acquisition proposals worth around ₹1.10 lakh crore.

About Defence Acquisition Council (DAC)

  1. The DAC is the highest decision-making body of the Ministry of Defence for defence procurement.
  2. It was established in 2001 following the Group of Ministers’ recommendations on national security reforms after the Kargil War.
  3. Its objective is to ensure timely procurement of approved requirements of the Armed Forces while making effective use of available budgetary resources.

Composition

  1. The Defence Minister is the Chairman of the DAC.
  2. Its members include the Chief of Defence Staff (CDS) and the Chiefs of the Army, Navy and Air Force.

Major Functions

  1. Approves the 15-year Long-Term Integrated Perspective Plan for the Armed Forces.
  2. Grants Acceptance of Necessity (AoN) for defence acquisition proposals.
  3. Decides procurement categories such as Buy, Buy and Make, and Make.
  4. Deals with single-window clearance related to defence acquisitions.
  5. Decides on offset provisions for acquisition proposals above ₹300 crore.
  6. Takes decisions on technology transfer under the Buy and Make category.
  7. Considers matters related to field-trial evaluation of acquisition proposals.

 Defence Acquisition Council FAQs

Q1. What is the primary role of the DAC?
Ans: The DAC is the highest decision-making body of the Ministry of Defence for defence procurement. It considers and approves major acquisition requirements of the Armed Forces.

Q2. Who heads the DAC?
Ans: The Defence Minister chairs the Council. The CDS and the Chiefs of the Army, Navy and Air Force are its members.

Q3. What does Acceptance of Necessity mean?
Ans: Acceptance of Necessity (AoN) is the approval given to a proposed defence acquisition requirement.

Q4. What are the main procurement categories considered by the DAC?
Ans: The DAC decides among categories such as Buy, Buy and Make, and Make, depending on the nature of the acquisition proposal.

Q5. What is the significance of the 15-year Long-Term Integrated Perspective Plan?
Ans: It provides a long-term perspective on the capability requirements of the Armed Forces and is approved by the DAC.

Q6. Why was the DAC established?
Ans: It was established in 2001 following the Group of Ministers’ recommendations on national security reforms after the Kargil War.

Q7. What is the DAC’s role in technology transfer?
Ans: It takes decisions on transfer of technology under the Buy and Make category of defence acquisition proposals.