Context: The Defence Acquisition Council (DAC), accorded approval in respect of Acceptance of Necessity (AoNs) for various Capital Acquisition Proposals amounting to Rs 2.23 lakh crore.
India’s Drive for Self-Reliance in Defence
- Self-reliance: In line with the goal of the ‘Aatmanirbharta,’ an acquisition worth Rs 2.20 lakh crore (98% of the total AoN amount) will be sourced from domestic industries, which will substantially boost the Indian Defence Industry.
- Maximise Indigenisation: The Defence Acquisition Council has also approved an amendment to Defence Acquisition Procedure (DAP) 2020 to Maximise Indigenisation.
- A minimum of 50% of indigenous content shall be in the form of material, components & software manufactured in India in all procurement cases.
- To calculate Indigenous content, the cost of Annual Maintenance Contract (AMC)/Comprehensive Maintenance Contract (CMC)/After Sale Service shall be excluded.
- Encourage Start-ups/MSMEs Participation: For all procurement cases with AoN cost up to Rs 300 crore, registered MSMEs and recognized start-ups will be considered for the issue of Request for Proposal (RFP) without any stipulation of financial parameters.
- This can further be relaxed with approval of the Defence Procurement Board (DPB) for AoN costs up to Rs 500 crore on a case-to-case basis.
About Defence Acquisition Council (DAC):
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- The Defence Acquisition Council is the highest decision-making body of the Defence Ministry on procurement.
- Formation: It was formed after the Group of Ministers’ recommendations on ‘Reforming the National Security System’ in 2001, post-Kargil War (1999).
- Composition:
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- The Defence minister is the chairman of Defence Acquisition Council.
- Its members include the Chief of Defence Staff (CDS) and Army, Navy, and Air Force chiefs.
- Acceptance of Necessity (AoN): The approval, termed AoN, is the first step toward procurement of any military equipment and hardware under India’s defence acquisition norm.
- The tendering and contracting process is undertaken only after the grant of AoN.
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Defence Acquisition Council’s Recent Procurement Decisions:
- Procurement For Indian Army:
- Two types of Anti-tank Munitions namely, Area Denial Munition (ADM) Type-2 and Type-3, which can neutralise Tanks and Armoured personnel carriers and enemy personnel.
- A state-of-the-art Towed Gun System (TGS) to replace the Indian Field Gun (IFG) has been granted which will become a mainstay of the Artillery forces of the Indian Army
- The Nubless projectile (155 mm) for use in 155 mm Artillery guns which will enhance lethality and safety of the projectiles.
- Procurement and integration of Automatic Target Tracker (ATT) and Digital Basaltic Computer (DBC) for T-90 Tanks will help maintain a combative edge of T-90 tanks over adversary platforms.
- Procurement For Indian NAvy: procurement of Medium Range Anti-Ship Missiles (MRAShM) for a surface platform of the Indian Navy.
- The MRAShM is envisaged as a lightweight Surface-to-Surface Missile which will be a primary offensive weapon onboard Indian Naval Ships.
- Procurement For Indian Air Force:
- Procurement of Light Combat Helicopter (LCH)-Prachand and Light Combat Aircraft (LCA-Tejas) Mk 1A and upgradation of Su-30 MKI Aircraft for IAF from Hindustan Aeronautics Limited (HAL).
- This equipment will provide enormous strength to the IAF, and acquisition from domestic defense industries will take indigenous capability to new heights.
- It will also substantially reduce dependability on foreign Original Equipment Manufacturers (OEMs).
Also Read: Defence Procurement Procedure 2020
Source: PIB
December 1, 2023
