Defence Acquisition Council clears acquisitions worth Rs 52,000 crore

• The Defence Acquisition Council (DAC), under the chairmanship of Defence Minister Rajnath Singh,  accorded in-principle administrative approval to various acquisition proposals worth nearly Rs 52,000 crore to bolster the combat capabilities of the armed forces.

Proposal that got approved in the meeting:

• For the Indian Army, approval has been granted for procurement of anti-unmanned aerial vehicles (UAV) electronic warfare system ‘Akash Tarang’, Man Portable Anti-Tank Guided Missile (MPATGM) systems, medium-range surface-to-air missile (MRSAM) weapon system, Very Short Range Air Defence System (V-SHORADS), Active Protection System for tanks and jet-based Kamikaze drone system.

• ‘Akash Tarang’ will provide effective anti-UAV protection to the Army formations.

• The MPATGM will enhance the potential of the infantry to counter mechanised threats of the adversary, while the MRSAM system provides medium-range air defence against a variety of stand-off aerial threats.

• V-SHORADS with multi-spectral sensing will enhance counter-measure resilience and effectiveness of the Army.

• The Active Protection System will be capable of improving the defence mechanism of tanks and enhancing their survivability. 

• The jet-based Kamikaze drones will provide better electronic warfare capability, with greater lethality and survivability while also being cost effective.

• For the Indian Navy, approval was given for the procurement of Multi-Influence Ground Mine (MIGM), Naval Shipborne Unmanned Aerial System (NSUAS) and the setting-up of Land-Based Testing Facility (LBTF) for Electric Propulsion System.

• The MIGM will deny freedom of manoeuvre to the adversary. 

• The NSUAS, equipped with advanced sensors, will enhance situational awareness of the Navy. 

• The LBTF will meet the testing requirements for motors and associated propulsion systems of the Indian naval assets.

• For the Indian Air Force, the approval was accorded for the procurement of Fixed-Wing Based High Altitude Pseudo Satellite (FW-HAPS) and other proposals. 

• The FW-HAPS will carry out persistent intelligence, surveillance and reconnaissance,  telecommunication and remote sensing for the Indian Air Force.

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 utilising 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.

• In the financial year 2025-26, approval for 55 proposals amounting to Rs 6.73 lakh crore has been accorded by the DAC. 

• Moreover, capital procurement contracts for 503 proposals amounting to Rs 2.28 lakh crore have been signed in the current fiscal year.

• Both the quantum of approval given and capital contracts signed, so far, has been the highest in any given financial year.