The Defence Acquisition Council (DAC) is the highest decision-making institution within the Ministry of Defence for all matters concerning capital acquisitions and new policies for the Indian Army, Navy, Air Force, and Coast Guard. It was formally constituted in 2001 following the recommendations of the Group of Ministers on 'Reforming the National Security System' after the Kargil War (1999). The DAC was created to address systemic weaknesses, streamline the defence procurement process, and reduce delays in acquiring modern military equipment.
The DAC is chaired by the Defence Minister and includes the Chiefs of the three Services and the Defence Secretary as members. Its primary mechanism is granting the Acceptance of Necessity (AoN) for any capital acquisition proposal, which is the essential first step before procurement can proceed. The DAC also provides in-principle approval for the 15-year Long-Term Integrated Perspective Plan (LTIPP) for the armed forces. Furthermore, it categorizes acquisition proposals into types like 'Buy,' 'Buy & Make,' and 'Make,' which directly supports the Atmanirbhar Bharat initiative by prioritizing indigenous manufacturing.
The DAC's functioning is governed by the Defence Acquisition Procedure (DAP), which was most recently updated to DAP-2020, replacing the earlier Defence Procurement Procedure (DPP). While the DAC's core structure and function as the apex decision-making body have remained constant since its formation, the procedural framework it operates under has been amended to enhance transparency, accountability, and self-reliance in the defence sector.