Defence Acquisition Council (DAC)
Why it Matters?
In its first meeting after Operation Sindoor, the Defence Acquisition Council approved indigenous defence procurements worth ₹1.05 lakh crore, including QRSAM systems, to bolster air defence along the Pakistan border and enhance tri-service operational readiness.
What You Should Know?
The Defence Acquisition Council (DAC) is the highest decision-making body in the Ministry of Defence for capital procurement.
It was established in 2001 based on the Group of Ministers’ recommendations post-Kargil War (1999) to reform the national security system.
The DAC aims to ensure the timely and efficient procurement of defence equipment within the allocated budget.
The Defence Minister chairs the DAC, and its members include the CDS and the Chiefs of the Army, Navy, and Air Force.
DAC grants in-principle approval to the Long Term Integrated Perspective Plan (LTIPP) for 15 years.
It accords Acceptance of Necessity (AoN) to acquisition proposals.
An AoN means the government has accepted the need for the equipment and is the first steptowards initiation of the procurement process.
It categorizes proposals under ‘Buy’, ‘Buy & Make’, and ‘Make’ categories.
DAC handles issues of single vendor clearance in procurement.
It decides on offset provisions for deals exceeding ₹300 crore.
It takes decisions on Transfer of Technology (ToT) for ‘Buy & Make’ deals.
DAC oversees field trial evaluations for equipment procurement.