Defence Acquisition Council

• The Defence Acquisition Council (DAC) accorded Acceptance of Necessity (AoN) for capital acquisition proposals worth Rs 70,500 crore for the Armed Forces & Indian Coast Guard under ‘Buy Indian-IDDM’ (Indigenously Designed, Developed and Manufactured) category of Defence Acquisition Policy (DAP), 2020.
  • AoN is the first step in long defence acquisition process, and may or may not necessarily culminate into a final order.
• Approval was granted for-
  • Indian Navy– BrahMos missiles, Shakti Electronic Warfare systems & Utility Helicopters-Maritime;
  • Indian Airforce – Long Range Stand-Off Weapon to be integrated on SU-30 MKI aircraft ;
  • Indian Army– High Mobility & Gun Towing Vehicles etc.;
  • Indian Coast Guard -Advanced Light Helicopters MK-III from HAL .
• DAP, 2020 was issued to streamline procurement process and provide a boost to indigenous arms manufacturing.
• DAP 2020 superseded Defence Procurement Procedure (DPP) of 2016.
• It includes following procurement categories:
  • Buy (Indian – Indigenously Designed Developed and Manufactured),
  • Buy (Indian),
  • Buy and Make (Indian),
  • Buy (Global – Manufacture in India) and
  • Buy (Global).
• Highest priority is accorded to procurement under Buy (Indian-IDDM) category.
• Buy Indian-IDDM refers to acquisition of products from an Indian vendor that have a minimum of 50% Indigenous Content on cost basis of total contract price i.e.total contract price less taxes and duties.

About Defence Acquisition Council

• The DAC is the highest decision-making body in the Defence Ministry for deciding on new policies and capital acquisitions for the three services (Army, Navy and Air Force) and the Indian Coast Guard.
• The Minister of Defence is the Chairman of the Council.
• It was formed, after the Group of Ministers recommendations on ‘Reforming the National Security System’, in 2001, post Kargil War (1999).