Daily News Analysis

Defence Acquisition Council (DAC)

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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.


 


 

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