Defence Acquisition Council (DAC)

Dec. 2, 2023

The Defence Acquisition Council recently accorded approval for Acceptance of Necessity (AoNs) for various capital acquisition proposals amounting to ₹2.23 lakh crore.

About the Defence Acquisition Council (DAC):

DAC is the highest decision-making body of the Defence Ministry on procurement.
Objective: To ensure expedited procurement of the approved requirements of the armed forces.
Formation: It was formed after the Group of Ministers' 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 the Chief of Defence Staff (CDS) and chiefs of the Army, Navy, and Air Force.
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.
- Categorization 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.