Context
The Defence Acquisition Council (DAC) has cleared defence acquisition proposals worth around ₹1.10 lakh crore.
About Defence Acquisition Council (DAC)
- The DAC is the highest decision-making body of the Ministry of Defence for defence procurement.
- It was established in 2001 following the Group of Ministers’ recommendations on national security reforms after the Kargil War.
- Its objective is to ensure timely procurement of approved requirements of the Armed Forces while making effective use of available budgetary resources.
Composition
- The Defence Minister is the Chairman of the DAC.
- Its members include the Chief of Defence Staff (CDS) and the Chiefs of the Army, Navy and Air Force.
Major Functions
- Approves the 15-year Long-Term Integrated Perspective Plan for the Armed Forces.
- Grants Acceptance of Necessity (AoN) for defence acquisition proposals.
- Decides procurement categories such as Buy, Buy and Make, and Make.
- Deals with single-window clearance related to defence acquisitions.
- Decides on offset provisions for acquisition proposals above ₹300 crore.
- Takes decisions on technology transfer under the Buy and Make category.
- 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.

