Defence Acquisition Council

Defence Acquisition Council
Name	Defence Acquisition Council
Formation	2001
Type	Statutory body
Headquarters	New Delhi
Leader title	Chairman
Leader name	Rajnath Singh
Parent organization	Ministry of Defence

Defence Acquisition Council is the apex decision-making body for procurement of Indian Armed Forces equipment and platforms. Constituted to streamline capital acquisition, it coordinates between the Ministry of Defence, the Indian Army, the Indian Navy, the Indian Air Force and the Defence Research and Development Organisation. The council plays a central role in implementing policies such as Make in India for defence production and in executing long-term plans like the Defence Procurement Procedure and subsequent policy frameworks.

History

The council was established in the early 21st century as part of wide-ranging reforms following critiques of procurement delays during conflicts such as the Kargil War and strategic assessments after the 1999 Kargil conflict. It emerged from initiatives led by successive Defence Ministers including George Fernandes and bureaucratic reforms advocated by the V. K. Singh-era review committees. The intent was to replace ad hoc boards with a centralized body akin to procurement structures in countries such as the United States Department of Defense and the Ministry of Defence (United Kingdom), and to implement recommendations from panels like the Naresh Chandra committee and the S. R. S. Appasamy-style internal studies. Over time the council’s remit expanded under policy documents including the Defence Procurement Procedure 2002, the Defence Procurement Procedure 2016, and reforms tied to the Strategic Partnership Model.

Structure and Membership

The council is chaired by the Raksha Mantri and includes service chiefs such as the Chief of the Army Staff, the Naval Chief, and the Air Chief, along with the Defence Secretary, the Secretary (Defence Production), and the CEO of the Defence Procurement Board where constituted. Senior civilian posts such as the Secretary (Defence Research and Development) representing the Defence Research and Development Organisation and heads of procurement-related organisations like Hindustan Aeronautics Limited and Bharat Electronics Limited are regularly consulted. The composition mirrors structures found in institutions like the National Security Council and employs secretariat support from the Department of Defence Production and the Department of Defence Research and Development.

Functions and Powers

The council’s principal function is sanctioning capital acquisitions above thresholds delegated by the Ministry of Defence and monitoring major procurement timelines. It approves equipment categories, procurement routes (including Buy Indian, Buy and Make (Indian), and Buy Global), project clearances, and exceptions invoked under urgent operational requirements such as those encountered in the context of the Sino-Indian border standoff (2020) and counterinsurgency operations in Jammu and Kashmir. The council exercises powers to designate strategic partners under the Strategic Partnership Model, to fast-track emergency purchases, and to disburse delegated financial powers from the Cabinet Committee on Security. It interfaces with statutory regulators such as the Ministry of Finance and consults procurement entities including the Indian Ordnance Factories.

Defence Procurement Process

Procurement begins with services’ Staff Qualitative Requirements and the Acceptance of Necessity routed through boards like the Board of Officers. The council authorizes requests for proposals, shortlists vendors, and approves trials and user evaluations typically conducted at installations such as the Defence Research and Development Laboratory test facilities and service proving grounds. Contracts may be signed with indigenous firms like Tata Group and Larsen & Toubro or foreign vendors after clearances involving the Foreign Investment Promotion Board norms and the Defence Trade Controls mechanisms. Processes include project management oversight, milestone-linked payments, transfer of technology clauses, and offset obligations similar to practices in the European Defence Agency procurement frameworks.

Major Decisions and Programmes

The council has cleared high-profile programmes including multirole fighter acquisitions akin to the Rafale deal deliberations, indigenous platforms such as HAL Tejas, naval projects like the Scorpene-class submarines, and artillery systems including the Dhanush programme. It has been instrumental in enabling strategic partnerships for projects involving corporations like Mahindra & Mahindra and Bharat Dynamics Limited, and in approving long-term plans for platforms such as the Arjun tank upgrades and the INS Vikrant aircraft carrier construction. The council’s approvals have also shaped missile programmes in coordination with Defence Research and Development Organisation initiatives like the Akash series.

Criticism and Reforms

Criticism has focused on delays, transparency issues, and perceived bureaucracy reminiscent of controversies like those surrounding the Bofors scandal era procurement scrutiny. Analysts from institutions such as the Centre for Air Power Studies and think tanks like the Observer Research Foundation have urged greater accountability, audit mechanisms, and strengthened indigenous industrial base protections. Reforms have included enhanced e-procurement portals, consolidation of procurement rules into the Defence Acquisition Procedure 2020, and moves to increase private sector participation modeled after reforms in the Aerospace Industry and Shipbuilding sectors. Ongoing debates involve balancing strategic autonomy with foreign collaboration, and improving timelines noted in parliamentary oversight by bodies like the Public Accounts Committee.

Category:Defence procurement in India