DAC Granted Acceptance of Necessity for Defence Acquisition Proposals

• 07 Sep 2024

Source: IE

Why in News?

Recently, the Defence Acquisition Council (DAC) granted acceptance of necessity (AoN) for 10 defence acquisition proposals worth Rs. 1,44,716 crores.

• Indigenous sources will account for 99% of the total value of the projects cleared by DAC under the Buy (Indian) and Buy (Indian-IDDM) categories.

Note:

• An AoN means the government has accepted the need for the equipment and is the first step towards initiation of the procurement process. However, grant of an AoN does not necessarily lead to a final order.
• The Buy (Indian-Indigenously Designed Developed and Manufactured (IDDM)) category is the most important category of acquisition for indigenisation under the defence procurement policy.

What are the Major Acquisition Proposals?

• Future Ready Combat Vehicles (FRCVs): Forming the centrepiece of the projects cleared by the government, it is an advanced Main Battle Tank with superior mobility, all-terrain capability, multilayered protection, precision, lethal firepower, and real-time situational awareness.
  • Its purpose is to replace ageing Soviet-origin T-92 tanks.
  • The Indian Army plans to induct 1,770 FRCVs at a cost of around ₹60,000 crore.
    • Under the Make I procedure of Defence Acquisition Procedure (DAP), the FRCVs will be acquired in three phases.
• Air Defence Fire Control Radars: It can detect and track aerial targets and allocate guns for firing.
  • The current procurement follows the earlier import of 66 radars from Israel at Rs 2,500 crore, intended to replace outdated fly-catcher radars.
  • The proposal has also been approved for Forward Repair Team (Tracked) which has suitable cross country mobility for carrying out in-situ repair during mechanised operations.
• Proposals for Indian Coast Guard:
  • Dornier-228 Aircraft - to enhance the ICG’s surveillance and reconnaissance capabilities.
  • Next Generation Fast Patrol Vessels - with high operational features for rough weather conditions
  • Next Generation Offshore Patrol Vessels - with enhanced long-range operations to carry out patrolling of maritime zones, search and rescue, and disaster relief operations.

What is the Defence Acquisition Council (DAC)?

• The Defence Acquisition Council (DAC) is the top decision-making authority in the Defence Ministry for establishing new policies and capital acquisitions for the Army, Navy, Air Force, and the Indian Coast Guard.
• The Council is chaired by the Minister of Defence.
• It was established in 2001 following the recommendations of the Group of Ministers on 'Reforming the National Security System,' in the wake of the Kargil War 1999.

What are India’s Efforts for Self-Reliance in Defence Manufacturing?

• Self-reliance in the defence manufacturing sector is one of the government’s top priorities. India has taken a raft of measures to boost self-reliance including:
  • Phased bans on the import of hundreds of weapons and systems
  • Separate budget for buying locally made military hardware
  • Increasing FDI from 49% to 74% and improving ease of doing business.
• The ‘Make’ Categories is another initiative to achieve the objective of self-reliance by involving greater participation of the Indian industrial ecosystem including private sector. It Includes the Following Procedures:
  • Make-I (Government Funded): It involves design and development of equipment, systems, major platforms or upgrades thereof by the industry.
    • For Projects under Make-I sub-category, MoD provide fund support maximum upto 70% of the prototype development cost, based on viability gap funding method.
  • Make-II (Industry Funded): It covers military hardware that may not be designed and developed indigenously, but can be manufactured in the country for import substitution.
    • No government funding is provided.
  • Make-III (Indigenously Manufactured): These are subsystems, components, and ammunition produced in India to replace imports for existing weapon systems, often through foreign partnerships or technology transfers.

UPSC Civil Services Examination, Previous Year Question (PYQ)

Prelims

Q.What is “Terminal High Altitude Area Defense (THAAD)”, sometimes seen in the news? (2018)

(a) An Israeli radar system
(b) India’s indigenous anti-missile programme
(c) An American anti-missile system
(d) A defence collaboration between Japan and South Korea.

Ans: (c)

Q.Department of Border Management is a Department of which one of the following Union Ministries? (2008)

(a) Ministry of Defence
(b) Ministry of Home Affairs
(c) Ministry of Shipping, Road Transport and Highways
(d) Ministry of Environment and Forests

Ans: (b)