Defence Acquisition Council
Also called: DAC · Topic: Constitutional Bodies: UPSC, CAG, Finance Commission and Others · NCERT: Beyond NCERT
Meaning
The Defence Acquisition Council (DAC) is the top body in the Ministry of Defence that decides on buying major military equipment, such as warships. The Raksha Mantri (Defence Minister) chairs it. The Constitution does not create it, and no Act of Parliament does either. It is an executive body that works under the ministry. Its first step in any purchase is to grant Acceptance of Necessity (AoN). This is the first formal approval, and it means the government agrees that the armed forces really need the item. Only after AoN can the purchase move on to bids and a signed contract.
Example
On 6 June 2022, the DAC granted AoN for the Navy's Next Generation Corvettes at about Rs 36,000 crore. This was part of a package of proposals worth Rs 76,390 crore. The contracts for 8 of these ships were signed only in November 2026, for Rs 53,866.50 crore. So an AoN is an early estimate, not the final price.
Don't confuse with
- Contract signing: AoN only says "we need this". The money is committed later, when the ministry signs a contract with the chosen builder, and the amount can be very different.
- Constitutional bodies (e.g. CAG, Finance Commission): the Constitution creates those, and only an amendment can change them. The DAC is an executive body, so the government can change it by its own order.