To counter corruption and speed up decision- making in military procurement, the government of India in 2001 decided to set up an integrated Defence Acquisition Council (DAC).
- It is headed by the Defence Minister.
- The DAC is responsible to give policy guidelines to acquisitions, based on long-term procurement plans.
- It also clears all acquisitions, which includes both imported and those produced indigenously or under a foreign license.
- The objective of the Defence Acquisition Council is to ensure expeditious procurement of the approved requirements of the Armed Forces in terms of capabilities sought, and time frame prescribed, by optimally utilizing the allocated budgetary resources.
The Functions of the DAC includes:
- In-principle approval of 15 Year Long-Term Integrated Perspective Plan for Defence Forces;
- Accord of Acceptance of Necessity to acquisition proposals;
- Categorization of the acquisition proposals relating to ‘Buy’, ‘Buy & Make’ and ‘Make’;
- Issues relating to Single vendor clearance;
- Decision regarding ‘offset’ provisions in respect of acquisition proposals above Rs. 300 crores;
- Decisions regarding Transfer of Technology under ‘Buy & Make’ category of acquisition proposals; and
- Field Trial evaluation.