Defence Acquisition Council (DAC)

Recently, the Defence Acquisition Council (DAC) sanctioned a series of procurement proposals worth approximately ?67,000 crore to enhance India's military preparedness.

About Defence Acquisition Council (DAC)

The Defence Acquisition Council (DAC) is the highest decision-making body within the Ministry of Defence (MoD) for the procurement of defense equipment and services. The council plays a key role in ensuring that the Indian armed forces are equipped with the necessary capabilities in a timely manner, within budgetary constraints.

Formation

The DAC was established in 2001 following the Group of Minister’s recommendations on "Reforming the National Security System," which was a direct response to the Kargil War (1999). The intent was to streamline and improve defense procurement processes and capabilities for the armed forces.

Composition of the DAC

• Chairman: Defence Minister

• Members:

  • Minister of State for Defence

  • Chief of Defence Staff (CDS)

  • Chief of Army Staff (COAS)

  • Chief of Naval Staff (CNS)

  • Chief of Air Staff (CAS)

  • Defence Secretary

  • Secretary, Department of Defence Production and Supplies

  • Secretary, Defence Research and Development

  • Secretary, Defence Finance

  • Vice Chief of Defence Staff (when appointed) / CISC

  • Special Secretary (Acquisition)

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

The DAC’s composition ensures that all branches of the military, as well as key departments within the Ministry of Defence, are represented in the decision-making process.

Functions of the DAC

The DAC is tasked with several critical functions to ensure the defense forces are adequately equipped:

1. Long-Term Integrated Perspective Plan (LTIPP):

   • The DAC gives in-principle approval for a 15-year LTIPP, guiding the overall defense acquisitions and ensuring that long-term needs are met.

2. Approval for Acquisition Proposals:

   • The DAC evaluates and approves acquisition proposals, ensuring that the requirements of the armed forces are met in a timely manner.

3. Categorization of Acquisitions:

   • Proposals are categorized into three main types:

     • Buy

     • Buy & Make

     • Make

4. Single Vendor Clearance:

   • The DAC looks into issues related to single vendor clearances, ensuring fair and transparent procurement.

5. Offset Provisions:

   • The DAC takes decisions regarding the offset provisions in procurement proposals exceeding ?300 crore, which involves a return of business to the Indian defense industry.

6. Transfer of Technology (ToT):

   • It oversees decisions related to the Transfer of Technology for the ‘Buy & Make’ category of acquisitions.

7. Field Trial Evaluation:

   • The DAC also assesses and monitors the field trial evaluations to ensure that the equipment meets the desired standards and capabilities.