Defence Acquisition Council (DAC)

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. 

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