||

Connecting Communities, One Page at a Time.

Plans for ₹1.05 lakh crore in capital acquisitions approved by the Defence Acquisition Council (DAC)

The Defence Acquisition Council (DAC) sanctioned capital acquisition plans totaling ₹1.05 lakh crore, designed to bolster India’s defence capabilities via entirely domestic sourcing

Deeksha Upadhyay 04 July 2025 16:54

Plans for ₹1.05 lakh crore in capital acquisitions approved by the Defence Acquisition Council (DAC)

Concerning Recent Authorizations for Defense Acquisitions:

₹1.05 Lakh Crore Local Proposals Approved:

DAC sanctioned 10 capital acquisition proposals within the Buy (Indian-IDDM) category.

Naval Acquisition Strategies:

AoN covered Moored Mines, Mine Countermeasure Vessels, Submersible Autonomous Vessels, and Super Rapid Gun Mounts.

₹30,000 Cr QR-SAM Acquisition in the Works:

The Ministry of Defence is expected to conclude the purchase of three regiments of Quick Reaction Surface-to-Air Missiles (QR-SAM) to enhance the air defense capabilities of the Indian Army.

Largest Helicopter Agreement in History:

The Cabinet Committee on Security approved a ₹62,700 crore agreement to purchase 156 Light Combat Helicopters (Prachand) from Hindustan Aeronautics Ltd (HAL).

Concerning the Defence Acquisition Council (DAC):

It serves as the top authority in the Ministry of Defence regarding procurement issues.

Founded in 2001, subsequent to the Group of Ministers Report on National Security reforms after the Kargil War (1999).

Ministry: Within the Defence Ministry, Government of India.

Led by the minister of defense.

Comprises the Chief of Defence Staff and the leaders of the Army, Navy, and Air Force.

Objective: To guarantee timely, economical, and capability-focused purchasing by optimally utilizing the assigned budget.

Main Roles:

Grants Approval of Necessity (AoN) for proposals related to capital acquisition.

Grants preliminary approval to the Long-Term Integrated Perspective Plan (LTIPP) covering a period of 15 years.

Classifies acquisitions into Buy (Indian), Buy & Make, and Make categories.

Determines Transfer of Technology (ToT) and offsets for contracts exceeding ₹300 crore.

Addresses procurement problems with individual vendor

Manages evaluations of field trials and assesses performance.

Also Read