Why in News?

• The Defence Acquisition Council (DAC) recently approved the capital acquisition of indigenously-developed military hardware worth Rs 70,584 crore.

About DAC:

• The DAC is the highest decision-making body of the Defence Ministry on procurement.
• Objective is to ensure expeditious procurement of the approved requirements of the armed forces.
• It was formed after the Group of Minister’s recommendations on ‘Reforming the National Security System’, in 2001, post-Kargil War (1999).

Composition:

• The defence minister is the chairman of DAC.
• Its members include the Chief of Defence Staff (CDS) and Chiefs of the Army, Navy, and Air Force.

Functions:

• Gives in-principle approval of a 15 years Long Term Integrated Perspective Plan (LTIPP) for defence forces.
• Accords Acceptance of Necessity (AoN) to acquisition proposals.
• Categorization of the acquisition proposals relating to ‘Buy’, ‘Buy & Make’, and ‘Make’.
• Looks into issues relating to single vendor clearance.
• Takes decisions regarding ‘offset’ provisions in respect of acquisition proposals above Rs 300 crore.
• Takes decisions regarding the Transfer of Technology under the ‘Buy & Make’ category of acquisition proposals.
• Field trial evaluation.