Defence Acquisition Council approves Rs 2,900 crores

September 29, 2020

On September 28, 2020, the Defence Acquisition Council approved Rs 2,900 crores for the acquisition of Indian Defence Equipment.

Highlights

The procurement includes 72,000 assault rifles from the United States. It also includes procurement of domestic and foreign vendors. The other procurement under the approval includes

  • Smart Anti Airfield Weapon and Static High Frequency Trans-receiver sets. This is to be bought under Buy Indian category.
  • High Frequency Radio Sets. These sets will enable seamless communication for the Indian Army and Air Force Field Unites. They are to be procured at a cost of Rs 540 crores.
  • Smart Anti Field weapon that is to be procured at Rs 970 crores. This will add firepower of Indian Navy and Indian Air Force.
  • DAC has approved the procurement of SIG SAUER Assault Rifles costing around Rs 780 crores.

Defence Acquisition Procedure

The Defence Acquisition Procedure was unveiled recently by the Defence Minister Rajnath Singh. It was first introduced in 2002. The new procedure includes provisions to encourage Foreign Direct Investment (FDI) to establish manufacturing hubs for both import and export. This is to be done giving protection to the interests of domestic industries of India.

The Defence Procurement Procedure contains processes that has to be followed by Indian Armed Forces in developing or obtaining defence weapon systems. The main aim is to achieve self-reliance by promoting indigenous design and get the weapons in a time bound manner without delays.

Defence Acquisition Council

It is the highest decision-making body in defence ministry. It was formed after the Group of Ministers recommended Reforming the National Security System in 2001 in post Kargil War. The following are the main functions of DAC

  • The DAC approves 15-year long term integrated perspective plan for defence forces
  • It categorises acquisition proposals related to Buy, Make and Buy and Make.
  • It makes decisions on “Transfer of Technology”.
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