DAC clears procurement of military hardware worth Rs 2.12 lakh crore

• The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, accorded Acceptance of Necessity (AoN) to various capital acquisition proposals of the defence forces at an estimated cost of about Rs 2,12,000 crore. 

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.

• 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.

Key projects that got approved in the last meeting:

• For the Indian Army, approval was accorded for the procurement of High Mobility Vehicles (HMV), Self-Propelled Tracked Gun System, Gun Shot Response System (GSRS), Light Multi Role Helicopters (LMRH), Very Short-Range Air Defence System (VSHORADS), Platform Based Counter Unmanned Aerial System (C-UAS), Unmanned Aerial System Brick Long Range, Surveillance UAV, Integrated Surveillance and Strike System and Long Range Kamikaze Drone System. 

• The HMVs will enhance operational capabilities, logistic support and mobility in challenging terrains. 

• The Self-Propelled Tracked Gun System will provide matching mobility and firepower to mechanised formations. 

• The GSRS will serve as a force multiplier providing real-time situational awareness of the forces. 

• The LMRH will be used by both the Indian Army and the Indian Air Force for Reconnaissance and Surveillance, Combat, Search and Rescue of troops, Humanitarian Assistance and Disaster Relief, etc. 

• The VSHORADS will engage new generation small size aerial threats, while C-UAS will enhance survivability of Tanks in the modern battlefield. 

• The Surveillance and Drone Systems will enhance the surveillance and targeting capabilities of the Indian Army.

• For the Indian Navy, approval was given for the procurement of Active Offboard Decoy System (AODS) and other major naval platforms. 

• The AODS will enhance the credibility of anti-missiles defence, especially against modern anti-ship missiles of adversaries. 

• The indigenously designed and constructed major naval platforms will possess modern-day warfare capabilities and enhance the combat capability of the Navy.

• For the Indian Air Force, approval was accorded for the procurement of helicopters, air defence systems, weapons and Mobile X-Band Doppler Weather Radar System to enhance the air defence and war fighting capabilities. 

• The procurement of Special Utility Helicopters will help the Indian Air Force to meet the important air transport requirements. 

• The X-Band Doppler Weather Radar System will provide high-resolution, localised weather surveillance in forward areas.