Defence Acquisition Council (DAC)

Why in news: The DAC accorded Acceptance of Necessity (AoN) for capital acquisition proposals worth ~₹79,000 crore to enhance the operational capabilities of the Armed Forces.

What is the DAC?

• The Defence Acquisition Council (DAC) is the highest decision-making body for capital defence procurements in India.
• It grants in-principle approvals and Acceptance of Necessity (AoN) for major acquisition proposals.

Establishment

• Constituted following the recommendations of the Group of Ministers (GoM) on Reforming the National Security System (post-Kargil reforms).

Composition

Chairman: Raksha Mantri (Ministry of Defence)

Members:

oRaksha Rajya Mantris

oChief of Defence Staff (CDS)

oChiefs of the Army, Navy and Air Force

Other Members:

oDefence Secretary

oSecretaries of Defence Production, Defence R&D, Defence Finance

Member Secretary: Deputy Chief of Defence Staff (PP&FD)

Functions

1Long-Term Perspective Planning: Provides in-principle approval to capital acquisitions under the 15-year Long-Term Perspective Plan (LTPP), especially projects with long gestation periods.

2Acceptance of Necessity (AoN): Grants AoN for capital acquisition projects proposed for inclusion in Five-Year Plans.

3Marks the first formal stage in the defence procurement process.

4Categorisation of Acquisition: Decides procurement category such as Buy (Indian), Buy & Make (Indian), Make, etc., to promote indigenisation.

5Monitoring of Major Projects: Reviews progress of key acquisition programmes based on inputs from the Defence Procurement Board.

6Policy Coordination: Ensures alignment between operational needs, financial prudence, and domestic defence production goals.