Defence Acquisition Council (DAC)

Context- The Defence Acquisition Council (DAC), under the chairmanship of defence minister Rajnath Singh, has recently cleared capital acquisition proposals worth Rs 84,560 crore.

Key Highlights

• Proposals

• • • 15 maritime reconnaissance and multi-task maritime aircraft for the Navy and the Coast Guard,
    • Six flight refueler aircraft for the IAF,
    • New technology anti-tank mines for the Army,
    • Heavy weight torpedoes (HWT) for the Navy’s Scorpene-magnificence submarines.
  • The DAC permitted modifications to the DAP 2020 regarding benchmarking, value computation, payment schedules, procurement portions, and other aspects.
  • These amendments had been accepted to promote procurement of superior technology from start-ups and MSMEs.
  • The approvals lay unique emphasis on procurement of diverse equipment from Indian vendors.

• Significance

• • The aircraft will be a first-rate addition to the existing P-8I maritime surveillance aircraft utilized by the forces for surveillance patrols and interdiction.
  • It will drastically increase the functionality of the forces.
  • When inducted, the refuellers could fill a vital potential gap in the IAF’s stock.
  • It might show to be an essential strategic asset and a pressure multiplier as they will permit fighter jets to stay airborne longer.
  • Currently, the IAF operates a fleet of six Russian IIyushin-78 tankers procured in 2003-04.
  • However, at any given time simplest 3-4 are serviceable.
  • The procurement of software program-described radios for the Coast Guard will meet its need for high-speed communication and secure networking, enabling seamless information exchange between the ICG and Indian Navy units.

Defence Acquisition Council (DAC)

• • DAC is the best choice-making frame in the Ministry of Defence.
  • It makes a decision on new guidelines and capital acquisitions for the Indian military, which include the Army, Navy, Air Force, and the Indian Coast Guard.
  • The DAC is headed by the Defence Minister.

• Responsibility

• • The DAC is responsible for the procurement and acquisition of weapons and equipment for the Indian military.
  • This consists of weaponry, armored motors, advanced conversation structures, and surveillance equipment.
• The DAC approves projects in 3 ways:
  • Buy projects: An outright purchase
  • Buy and make projects: A purchase followed through licensed production or indigenous development
  • Make projects: Indigenous manufacturing and R&D

Defence Acquisition Procedure (DAP) 2020

• • The DAP 2020 has been established as a potential catalyst for the Atmanirbhar Bharat Abhiyaan, in the area of defence manufacturing.
  • It makes a speciality of simplifying the defence acquisition and institutionalising tracking mechanism for selection of best equipment in a transparent and competitive way.

• Salient Features of DAP 2020

• • Notification of positive indigenisation lists in respect of weapons/platforms to ensure that equipment cited within the listing isn’t procured thru import.
  • Highest priority to procurement under Buy (Indian-Indigenous Design, Development & Manufacture [IDDM]) category.
  • Reservation for MSMEs and small shipyards for orders as much as Rs 100 crore/year.
  • Increased Indigenous Content (IC) in various categoryes of procurement under DAP-2020.
  • Introduction of new category of Buy (Global-Manufacture in India) to push to ‘Make in India‘ initiative of the Government.
  • Indigenisation of imported spares thru Make-III Process delivered with the purpose of developing self-reliance through import substitution.

About ‘Make’ Category

• The ‘Make’ category of capital acquisition seeks to build indigenous abilities through the involvement of each public and private sector.
• ‘Make-I’ refers to government-funded projects even as ‘Make-II’ covers industry-funded projects.
• ‘Make-III’ covers navy hardware that will not be designed and advanced indigenously, however can be manufactured in the country for import substitution.
• Indian firms will additionally manufacture these in collaboration with foreign companions.

Source: The Hindu

UPSC Prelims Practice Question:

Q.Consider the following statements regarding the Defence Acquisition Council (DAC):

1. It is the final decision-making body for defence policy or expenditure.
2. It deals with approval as well as expeditious acquisition of defence items.
3. The Chief of Defense Staff is the chairman of the DAC.

Which of the statements given above is/are correct?

a. 1 and 3 only

b. 2 only

c. 2 and 3 only

c. 1 and 2 only

Ans: “b”

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