DAC Approves Projects to Boost Armed Forces Capabilities

The Defence Acquisition Council (DAC) has recently approved capital acquisition proposals worth Rs 84,560 crore aimed at enhancing the capabilities of the Indian Armed Forces and the Indian Coast Guard. These proposals include:

• Maritime Reconnaissance and Multi-Mission Aircraft: 15 aircraft for the Navy and Coast Guard.
• Flight Refueller Aircraft: Six aircraft for the Indian Air Force (IAF).
• Anti-Tank Mines: New-generation anti-tank mines for the Indian Army.
• Heavy Weight Torpedoes (HWT): For the Navy's Scorpene-class submarines.

Additionally, the DAC has approved changes to the Defence Acquisition Procedure (DAP) 2020 concerning aspects like benchmarking, cost computation, payment schedules, and procurement quantities, with a focus on promoting advanced technology procurement from start-ups and MSMEs. These changes emphasize indigenous procurement, prioritizing Indian vendors.

About the Defence Acquisition Council (DAC):

• Role: The DAC is the highest decision-making body in the Ministry of Defence responsible for new policies and capital acquisitions for the Indian military, including the Army, Navy, Air Force, and Coast Guard.
• Chairman: The DAC is headed by the Defence Minister.
• Responsibilities: It oversees the procurement and acquisition of weapons and equipment for the Indian military, approving projects through three categories:
  • Buy projects: Outright purchase of equipment.
  • Buy and make projects: Purchase followed by licensed production or indigenous development.
  • Make projects: Indigenous production and R&D.
     

About the Defence Acquisition Procedure (DAP) 2020:

• Objective: DAP 2020 aims to boost Atmanirbhar Bharat (self-reliant India) in the defence sector by simplifying the acquisition process and ensuring transparency in the selection of the best equipment through competitive means.
• Key Features:
  • Positive Indigenisation Lists: Ensures equipment on the list is not procured through imports.
  • Priority to Indigenous Procurement: Emphasizes procurement under the Buy (Indian-Indigenous Design, Development & Manufacture [IDDM]) category.
  • Support for MSMEs: Reservation for MSMEs and small shipyards for orders up to Rs 100 crore/year.
  • Higher Indigenous Content (IC): Increased focus on indigenous content in procurement.
  • New Category - Buy (Global-Manufacture in India): Supports the Make in India initiative by promoting manufacturing in India.
  • Indigenisation of Imported Spares: Make-III Process aims to reduce reliance on imports by encouraging local production of spares.
     

About the ‘Make’ Category in DAP 2020:
The ‘Make’ category focuses on building indigenous defence capabilities through collaboration with both public and private sectors:

• Make-I: Government-funded projects for indigenous development.
• Make-II: Industry-funded projects, typically aimed at private sector innovation.
• Make-III: Covers hardware that may not be developed indigenously but can be manufactured in India for import substitution, often in collaboration with foreign partners.
   

Significance for India:

• Boost to Indigenous Defence Capabilities: The DAC’s focus on indigenous procurement and collaboration with MSMEs and start-ups is a step towards achieving self-reliance in the defence sector, reducing dependency on foreign suppliers.
• Strategic Defence Enhancements: These approved acquisitions will strengthen the armed forces' capabilities, improve surveillance, and enhance security along India’s borders and maritime areas.