The Defence Acquisition Council has accorded approval for Acceptance of Necessity (AoN) for 24 Capital Acquisition Proposals. These proposals include six for Indian Army, six for Indian Air Force, 10 for Indian Navy and two for Indian Coast Guard for a total value of Rs 84,328 crore.


About Defence Acquisition Council –

  • Defence Acquisition Council (DAC), under the Defence Minister was constituted for overall guidance of the defence procurement planning process. The composition of the DAC is as follows – Defence Minister: Chairman; Minister of State for Defence: Member; Chief of Army Staff: Member; Chief of Naval Staff: Member; Chief of Air Staff: Member etc. It decides on the new policies and capital acquisitions for the three services (Army, Navy and Air Force) and the Indian Coast Guard.
  • It was formed, after the Group of Ministers recommendations on ‘Reforming the National Security System’, in 2001, post Kargil War (1999).
  • 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 utilising the allocated budgetary resources.
  • The functions of the DAC include –
      • in-principle approval of 15 Year Long-Term Integrated Perspective Plan for Defence Forces;
      • accord of Acceptance of Necessity to acquisition proposals;
      • categorisation 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; and
      • Field Trial evaluation.