India’s growing geopolitical significance and strategic defence needs demand a robust and transparent procurement process. At the heart of this process is the Defence Acquisition Council (DAC) — the apex body responsible for ensuring that defence procurement aligns with national security objectives and operational preparedness.
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What is the Defence Acquisition Council (DAC)?
The Defence Acquisition Council (DAC) is the highest decision-making body in India responsible for overseeing capital procurement for the Indian Armed Forces — the Army, Navy, and Air Force.
Origin and Purpose:
- Established in 2001, post the Kargil War, to streamline and strengthen the defence acquisition process.
- Aims to expedite the decision-making process, reduce bureaucratic delays, and ensure accountability in military procurement.
Key Functions:
- Approve all new acquisition proposals above a certain financial threshold.
- Set policy guidelines on capital acquisitions.
- Review progress on approved projects.
- Prioritize defence needs to align with strategic and operational requirements.
Defence Acquisition Council Members: Composition and Responsibilities
The Defence Acquisition Council members include high-ranking officials responsible for India’s defence policy, finance, and operational readiness:
| Position | Role |
|---|---|
| Defence Minister (Chairperson) | Overall authority on defence procurement decisions. |
| Chiefs of the Army, Navy, Air Force | Provide operational and service-specific inputs. |
| Defence Secretary | Represents the Ministry of Defence. |
| Chief of Defence Staff (CDS) | Coordinates joint service requirements. |
| Secretary (Defence Production) | Inputs on indigenous manufacturing capabilities. |
| Secretary (Defence Finance) | Advises on the financial aspects of the acquisition. |
Defence Acquisition Committee vs Defence Acquisition Council
There is often confusion between the Defence Acquisition Committee and the Defence Acquisition Council.
| Aspect | Defence Acquisition Council (DAC) | Defence Acquisition Committee |
|---|---|---|
| Level | Apex body | Subordinate technical committee |
| Role | Policy, decision-making | Technical evaluations, vetting proposals |
| Composition | Ministers, Service Chiefs, top bureaucrats | Senior military and MoD officials |
| Purpose | Approval of projects | Technical & procedural scrutiny |
Understanding the Defence Acquisition Process
The defence acquisition process is methodical and comprises several stages to ensure transparency, cost-efficiency, and operational readiness.
Stages:
- Identifying Requirements:
- Based on operational needs raised by the services.
- Acceptance of Necessity (AoN):
- Granted by the DAC, this is the formal approval to initiate procurement.
- Preparation of RFP (Request for Proposal):
- Detailed specifications and tendering document for vendors.
- Technical & Commercial Evaluation:
- Assessment of vendor capabilities, technology, and cost.
- Contract Negotiation Committee (CNC):
- Finalizes the contract terms with the selected vendor.
- Signing the Contract:
- Legally binding agreement for delivery of goods/services.
The Defence Acquisition Procedure 2020: A Game Changer
India introduced the Defence Acquisition Procedure 2020 (DAP 2020) to modernize and simplify the acquisition process.
Key Features:
- Emphasis on ‘Atmanirbhar Bharat’ (Self-Reliant India): Boosting indigenous manufacturing.
- New Categories Introduced:
- Buy (Indian-IDDM), Buy (Global-Manufacture in India).
- Simplification of Procedures: Time-bound acquisition cycles.
- Encouragement to Startups & MSMEs: Special provisions for domestic industries.
DAP 2020 provides clear guidelines to promote Make in India projects while maintaining operational readiness.
Significance of the Defence Acquisition Council Meetings
Defence Acquisition Council meetings are crucial for the timely approval and execution of procurement projects.
Highlights:
- Assess critical capability gaps.
- Approve big-ticket acquisitions (fighter jets, submarines, missile systems).
- Review and align with geopolitical developments.
- Discuss indigenous defence production strategies.
Notable past meetings have resulted in the approval of multi-billion-dollar deals for modernisation and upgradation of India’s armed forces.
Challenges in the Defence Acquisition Process
Despite reforms, challenges persist:
- Lengthy Procedures: Even after DAP 2020, acquisitions can face delays.
- Budget Constraints: High-cost capital procurements strain fiscal resources.
- Technology Gaps: Indigenous production may lack cutting-edge tech in some domains.
- Bureaucratic Bottlenecks: Multiple layers of approval remain a hurdle.
The Way Forward
- Further simplification and digitalisation of the defence acquisition process.
- Boosting Public-Private Partnerships (PPP).
- Encouraging foreign OEMs (Original Equipment Manufacturers) to set up joint ventures in India.
- Continuous training for DAC and subordinate committee members.
Frequently Asked Questions (FAQs)
Q1. What is the Defence Acquisition Council (DAC)?
The DAC is India’s top body for approving and overseeing defence capital procurement, ensuring military readiness and strategic capability.
Q2. Who are the Defence Acquisition Council members?
The Council includes the Defence Minister (Chairperson), Service Chiefs, CDS, and secretaries from Defence, Finance, and Production.
Q3. What is the difference between Defence Acquisition Committee and Defence Acquisition Council?
The Council makes final policy and financial decisions, while the Committee performs detailed technical evaluations and scrutiny.
Q4. What is the Defence Acquisition Procedure 2020?
DAP 2020 governs the acquisition of defence equipment in India, emphasizing transparency, self-reliance, and streamlined processes.
Q5. Why are Defence Acquisition Council meetings significant?
They ensure that India’s defence procurement matches operational needs, budget constraints, and global security dynamics.
Conclusion
The Defence Acquisition Council plays a pivotal role in shaping India’s military strength and industrial self-reliance. With reforms like Defence Acquisition Procedure 2020, the process is becoming more transparent, indigenous, and operationally focused. However, continued reforms and industry engagement remain key to meeting future defence challenges.