The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, approved the procurement of future-ready combat vehicles (FRCVs) for modernisation of the Army’s tank fleet and air defence fire control radars, among other proposals.

The FRCVs will be futuristic main battle tanks with superior mobility, all-terrain ability, multi-layered protections, precision and lethal fires and real-time situational awareness.

What is the role of the Defence Acquisition Council?

• Pursuant to the recommendations made by the group of ministers on reforming the national security system in February 2001, a separate, dedicated structure for defence procurement was set up.

• In continuation of its efforts to streamline defence procurement procedures and to reduce timelines so as to ensure timely delivery of equipment to the armed forces, various measures to simplify the defence procurement procedure have been undertaken.

• A Defence Acquisition Council (DAC) was created as an overarching structure with the defence minister as its chairman.

• The DAC is the highest decision-making body of the defence ministry on procurement.

• The defence minister is the chairman of DAC. Its members include Chief of Defence Staff (CDS) and chiefs of Army, Navy and Air Force.

• The main objective of the DAC 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.

Its functions include:

i)  Give in principle approval of a 15 years Long Term Integrated Perspective Plan (LTIPP) for defence forces.

ii) Accord of acceptance of necessity to acquisition proposals. 

iii) Categorisation of the acquisition proposals relating to ‘Buy’, ‘Buy & Make’ and ‘Make’. 

iv) Look into issues relating to single vendor clearance. 

v) Take decisions regarding ‘offset’ provisions in respect of acquisition proposals above Rs 300 crore.

vi) Take decisions regarding Transfer of Technology under the ‘Buy & Make’ category of acquisition proposals. 

vii) Field trial evaluation.

Key projects that got approved in the last meeting:

• The DAC, chaired by Defence Minister Rajnath Singh, accorded Acceptance of Necessity (AoN) for 10 capital acquisition proposals amounting to Rs 1,44,716 crore.

• Of the total cost of the AoNs, 99 per cent is from indigenous sources under the ‘Buy (Indian)’ and ‘Buy (lndian-Indigenously Designed Developed and Manufactured)’ categories.

• An AoN was also accorded for the procurement of air defence fire control radars, which will detect and track aerial targets and provide firing solutions.

• The proposal has also been approved for Forward Repair Team (Tracked), which has suitable cross-country mobility for carrying out in-situ repair during mechanised operations. This equipment is designed and developed by Armoured Vehicles Nigam Limited, and is authorised for both mechanised Infantry Battalion and Armoured Regiment.

• Three AoNs have been accorded to enhance the capabilities of the Indian Coast Guard (ICG). The procurement of the Dornier-228 aircraft, next-generation fast patrol vessels having high operational features in rough weather conditions and next-generation offshore patrol vessels with advanced technology and enhanced long-range operations will enhance the capability of the ICG to carry out surveillance, patrolling of maritime zones, search-and-rescue and disaster-relief operations.

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