DAC clears proposals worth Rs 2.38 lakh crore

• The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, granted Acceptance of Necessity (AoN) for various proposals worth an estimated cost of about Rs 2.38 lakh crore on March 27.

What is the role of the Defence Acquisition Council?

• Pursuant to the recommendations made by the group of ministers on reforming the national security system in February 2001, a separate, dedicated structure for defence procurement was set up.

• In continuation of its efforts to streamline defence procurement procedures and to reduce timelines so as to ensure timely delivery of equipment to the armed forces, various measures to simplify the defence procurement procedure have been undertaken.

• A Defence Acquisition Council (DAC) was created as an overarching structure with the defence minister as its chairman.

• The DAC is the highest decision-making body of the defence ministry on procurement.

• The defence minister is the chairman of DAC. Its members include Chief of Defence Staff (CDS) and chiefs of Army, Navy and Air Force.

• The main objective of the DAC is to ensure expeditious procurement of the approved requirements of the armed forces in terms of capabilities sought and time frame prescribed by optimally utilizing the allocated budgetary resources.

Its functions include:

i)  Give in principle approval of a 15 years Long Term Integrated Perspective Plan (LTIPP) for defence forces.

ii) Accord of acceptance of necessity to acquisition proposals. 

iii) Categorisation of the acquisition proposals relating to ‘Buy’, ‘Buy & Make’ and ‘Make’. 

iv) Look into issues relating to single vendor clearance. 

v) Take decisions regarding ‘offset’ provisions in respect of acquisition proposals above Rs 300 crore.

vi) Take decisions regarding Transfer of Technology under the ‘Buy & Make’ category of acquisition proposals. 

vii) Field trial evaluation.

• In the financial year 2025-26, approval for 55 proposals amounting to Rs 6.73 lakh crore has been accorded by the DAC. 

• Moreover, capital procurement contracts for 503 proposals amounting to Rs 2.28 lakh crore have been signed in the current fiscal year.

• Both the quantum of approval given and capital contracts signed, so far, has been the highest in any given financial year.

Key projects that got approved in the last meeting:

• For the Indian Army, approval was accorded for the air defence tracked system, armoured piercing tank ammunition, high capacity radio relay, Dhanush gun system and runway independent aerial surveillance system, the ministry said.

• The air defence tracked system will provide real time air defence control and reporting capability, while the high capacity radio relay will provide reliable and fail proof communication.

• The Dhanush gun system will enhance the artillery’s capabilities to engage targets at longer ranges in all terrains with enhanced lethality and accuracy.

• The runway independent aerial surveillance system will provide surveillance capabilities to the Army units, with the Armoured Piercing Tank Ammunition enhancing the lethality of anti-tank ammunition.

• For the Indian Air Force, proposals were cleared for the procurement of medium transport aircraft, S-400 long range surface-to-air missile system, remotely piloted Strike aircraft and overhaul of Su-30 Aero engine aggregates.

• The induction of medium transport aircraft by replacing the transport fleet of AN32 and IL76 will meet the strategic, tactical and operational airlift requirements of the services.

• The S-400 system will counter enemy long-range air vectors targeting vital areas, while the remotely piloted Strike aircraft will enable undertaking offensive counter and coordinated air operations, also providing stealth Intelligence, surveillance and reconnaissance activities

• The overhaul of Su-30 aero engine and its aggregates will increase the service life of the aircraft and fulfil the operational requirement of the Air Force.

• For the Indian Coast Guard, approval was accorded for heavy duty air cushion vehicles.

• These vehicles will be used for multipurpose maritime coastal operational roles, including high-speed coastal patrolling, reconnaissance, search and rescue operations, rendering assistance to ships and carrying personnel and stores including logistics.