QUICK ANSWER

The Defence Acquisition Council (DAC) – the highest decision-making body of the Ministry of Defence for capital acquisitions – has approved defence purchase proposals worth around ₹52,000 crore. Chaired by the Defence Minister, the DAC grants ‘Acceptance of Necessity’ (AoN) for new equipment, and such approvals strengthen the armed forces while promoting indigenous manufacturing under ‘Aatmanirbhar Bharat’.

What is the Defence Acquisition Council (DAC)?

The Defence Acquisition Council is the apex decision-making body within the Ministry of Defence for procurement of defence equipment and platforms. It was set up to ensure speedy decision-making in defence acquisitions in line with the needs of the armed forces. It is chaired by the Union Defence Minister.

What is ‘Acceptance of Necessity’ (AoN)?

Acceptance of Necessity (AoN) is the first formal approval in the defence procurement process. When the DAC grants AoN for a proposal, it signals that the requirement is accepted and the acquisition process can begin. It does not mean immediate purchase but is a crucial starting step.

Significance of the Approval

  • Boosts the capability and readiness of the armed forces.
  • Encourages indigenous defence manufacturing and reduces import dependence.
  • Supports the ‘Make in India’ and ‘Aatmanirbhar Bharat’ initiatives.
  • Generates employment and strengthens the domestic defence industrial base.

Exam-Relevant Key Facts

Body Defence Acquisition Council (DAC)
Chairperson Union Defence Minister
Approval Value Around ₹52,000 crore (approx.)
Ministry Ministry of Defence, Government of India
Key Term Acceptance of Necessity (AoN)
Role Highest body for defence capital acquisitions
Thrust Indigenous procurement under Aatmanirbhar Bharat

Practice Questions (MCQs)

1. The Defence Acquisition Council (DAC) functions under which ministry?

(A) Ministry of Home Affairs
(B) Ministry of Defence
(C) Ministry of Finance
(D) Ministry of External Affairs
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Correct Answer: (B) Ministry of Defence

The DAC functions under the Ministry of Defence.

2. Who chairs the Defence Acquisition Council?

(A) Prime Minister
(B) Defence Minister
(C) Chief of Defence Staff
(D) Finance Minister
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Correct Answer: (B) Defence Minister

The DAC is chaired by the Defence Minister.

3. What does "AoN" stand for in defence procurement?

(A) Approval of Nation
(B) Acceptance of Necessity
(C) Assessment of Need
(D) Allocation of Notice
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Correct Answer: (B) Acceptance of Necessity

AoN means Acceptance of Necessity.

4. The DAC is the highest decision-making body for which type of proposals?

(A) Recruitment
(B) Capital acquisition
(C) Pension reforms
(D) Foreign postings
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Correct Answer: (B) Capital acquisition

It approves capital acquisition proposals.

5. Large DAC approvals mainly aim to strengthen:

(A) Tourism
(B) Armed forces capabilities
(C) Banking
(D) Agriculture
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Correct Answer: (B) Armed forces capabilities

They strengthen armed forces capabilities.

6. The DAC promotes which national initiative in defence?

(A) Digital India
(B) Atmanirbhar Bharat
(C) Swachh Bharat
(D) Skill India
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Correct Answer: (B) Atmanirbhar Bharat

The DAC promotes Atmanirbhar Bharat (self-reliance).

7. "Acceptance of Necessity" is which stage of a defence deal?

(A) Final delivery
(B) First formal approval
(C) Trial stage
(D) Payment stage
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Correct Answer: (B) First formal approval

AoN is the first formal approval stage.

8. Prioritising Indian vendors in procurement supports:

(A) Import dependence
(B) Indigenous manufacturing
(C) Foreign monopoly
(D) Reduced quality
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Correct Answer: (B) Indigenous manufacturing

It supports indigenous manufacturing.

9. The approved amount of ₹52,000 crore is a measure of:

(A) Annual salary bill
(B) Capital procurement value
(C) Tax collection
(D) Export earnings
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Correct Answer: (B) Capital procurement value

It represents the value of capital procurement approved.

10. A stronger domestic defence industry primarily reduces:

(A) Employment
(B) Import dependence
(C) Innovation
(D) Exports
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Correct Answer: (B) Import dependence

It reduces dependence on defence imports.

Frequently Asked Questions (FAQs)

❓ What is the Defence Acquisition Council (DAC)?

The DAC is the highest decision-making body in the Ministry of Defence for approving capital acquisition proposals for the armed forces. It is chaired by the Defence Minister.

❓ Who heads the Defence Acquisition Council?

The DAC is chaired by the Union Defence Minister of India.

❓ What does AoN mean in defence procurement?

AoN stands for "Acceptance of Necessity", the first formal approval granted by the DAC for a defence acquisition proposal.

❓ Why are such large defence approvals significant?

They strengthen the armed forces’ capabilities, promote indigenous manufacturing under "Make in India" / Atmanirbhar Bharat, and boost the domestic defence industry.

❓ How does the DAC support Atmanirbhar Bharat?

By prioritising procurement from Indian vendors and domestic manufacturers, the DAC promotes self-reliance in defence production.