Defence Acquisition Council (DAC)

Why in news?

• The Defence Acquisition Council (DAC) accorded Acceptance of Necessity (AoN) for capital acquisition proposals worth Rs 70,500 crore for the Armed Forces & Indian Coast Guard under ‘Buy Indian-IDDM’ (Indigenously Designed, Developed and Manufactured).

About Defence Acquisition Council (DAC):

• Defence Acquisition Council (DAC), under the Defence Ministry was constituted for overall guidance of the defence procurement planning process.
• It is the highest decision-making body in the Defence Ministry for deciding on new policies and capital acquisitions for the three services (Army, Navy and Air Force) and the Indian Coast Guard.
• The objective of the Defence Acquisition Council 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.
• It was formed, after the Group of Ministers recommendations on 'Reforming the National Security System', in 2001, post Kargil War (1999).

Composition:

• The Minister of Defence is the Chairman of the Council.
• Other members includes :
  • Chief of Defence Staff (CDS), Minister of State for Defence, Three Service Chiefs, Chief of Integrated Staff Committees, Defence Secretary, Secretary Defence Research & Development etc.

Functions:

• In-principle approval of 15 Year Long-Term Integrated Perspective Plan for Defence Forces
• Accord of Acceptance of Necessity to acquisition proposals
• Categorization of the acquisition proposals relating to 'Buy', 'Buy & Make' and 'Make'
• Issues relating to Single vendor clearance
• Decision regarding 'offset' provisions in respect of acquisition proposals above Rs. 300 crores
• Decisions regarding Transfer of Technology under 'Buy & Make' category of acquisition proposals
• Field Trial evaluation.

PRACTICE QUESTION

Consider the following statements regarding Defence Acquisition Council:

1. It is the highest decision-making body in the Defence Ministry for deciding on new policies and capital acquisitions for armed forces

2. It is chaired by Chief of Defence Staff

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer