Why in News? The Defence Acquisition Council (DAC) is currently in the news for according Acceptance of Necessity (AoN) to capital acquisition proposals worth a record ₹3.60 lakh crore ($39.7 billion). This massive clearance includes the long-awaited procurement of 114 Rafale multi-role fighter aircraft for the Indian Air Force, marking one of the largest single defence deals in India's history.
Key Information
Status: The highest decision-making body within the Ministry of Defence for deciding on new policies and capital acquisitions.
Establishment: Formed in 2001 based on the recommendations of the Group of Ministers on "Reforming the National Security System" following the 1999 Kargil War.
Objective: To ensure expeditious procurement of approved requirements for the Armed Forces by optimally utilising allocated budgets.
Composition:
Chairman: Union Minister of Defence.
Members: Includes the Chief of Defence Staff (CDS), the Chiefs of the Army, Navy, and Air Force, the Defence Secretary, and the Director General (Acquisition).
Key Functions:
Acceptance of Necessity (AoN): Grants the first formal procedural approval required for any capital acquisition project to proceed.
Categorisation: Decides the procurement route, such as 'Buy (Indian-IDDM)', 'Buy & Make', or 'Make', to prioritise indigenous manufacturing.
Strategic Planning: Gives in-principle approval to the 15-year Long-Term Integrated Perspective Plan (LTIPP) for modernisation.
Monitoring: Oversees the progress of major projects based on feedback from the Defence Procurement Board.
Significance: It acts as the cornerstone of the Atmanirbhar Bharat (Self-reliant India) initiative in defence, with over 90% of recent approvals focusing on indigenous sourcing.