DAC clears Rs 3.60 lakh crore worth of capital acquisition proposals to enhance the combat readiness of defence forces

1. At a Glance

• The Defence Acquisition Council (DAC), the apex MoD body for capital procurement, granted Acceptance of Necessity (AoN) worth ~₹3.60 lakh crore on 12 February 2026 — one of the largest single-sitting clearances in DAC history [S1].
• Bouquet covers IAF Rafale (MRFA), combat missiles, and Air-Ship Based High Altitude Pseudo Satellite (AS-HAPS), with majority of MRFA to be manufactured in India [S1].
• UPSC relevance: intersects GS-III (defence, indigenisation, S&T), GS-II (India-France relations), and current-affairs prelims (DAC, DAP 2020, HAPS).

2. Why in the News

• 12 Feb 2026 DAC meeting under Raksha Mantri Rajnath Singh accorded AoN for multi-service capital proposals at ~₹3.60 lakh crore to enhance combat readiness [S1].

3. Background & Evolution

• DAC constituted in 2001 post-Kargil Review Committee/Group of Ministers recommendations as the highest decision-making body on capital acquisitions in MoD.
• Procurement governed earlier by DPP (Defence Procurement Procedure) iterations (2002, 2005, 2008, 2011, 2013, 2016); replaced by Defence Acquisition Procedure (DAP) 2020, unveiled by Rajnath Singh, effective 01 October 2020 [S3].
• DAP 2020 aligned with Atmanirbhar Bharat and Make in India; introduced new category Buy (Global – Manufacture in India) and tightened indigenous content norms [S3].
• MoD has initiated a comprehensive review of DAP 2020 to align with national reforms [S4].

4. Core Static Facts

• Body: Defence Acquisition Council (DAC).
• Chairperson: Raksha Mantri (Defence Minister) — currently Rajnath Singh [S1].
• Parent Ministry: Ministry of Defence; secretariat under Department of Defence (Acquisition Wing).
• Procedural framework: DAP 2020 (in force from 01 Oct 2020) [S3].
• AoN: First-stage in-principle approval; Earnest Money Deposit (EMD) mandatory bid security for AoN > ₹100 crore [S3].
• Value cleared 12 Feb 2026: ₹3,60,000 crore [S1].
• Items:
• IAF: Multi-Role Fighter Aircraft (MRFA – Rafale), Combat Missiles, AS-HAPS (Air-Ship Based High Altitude Pseudo Satellite) [S1].
• Majority of MRFA to be manufactured in India [S1].

5. Multi-Dimensional Analysis

• Strategic / Geopolitical: Rafale top-up deepens India-France defence partnership (already includes 36 Rafale-IAF + 26 Rafale-Marine under IGA for Indian Navy) [S5]; strengthens air dominance amid two-front threat.
• Economic / Indigenisation: "Majority manufactured in India" clause channels Tier-2/3 MSME orders, supports Defence Industrial Corridors (UP & Tamil Nadu) and DPSU HAL ecosystems [S1][S3].
• Scientific/Technological: HAPS — solar-powered stratospheric pseudo-satellites (~20 km altitude) for persistent ISR; bridges UAV-satellite gap; aligns India with US/UK/China HAPS programmes [S1].
• Administrative: AoN is only Stage-1; RFP, trials, CNC, CFA approval still required — past AoNs often slip in execution (a recurring CAG concern).
• Fiscal: Capital outlay sourced from MoD Capital Acquisition Budget (FY26 defence capex > ₹1.7 lakh crore); large AoNs translate into multi-year committed liabilities.

6. Recent Developments (last 12-18 months)

• 12 Feb 2026 — ₹3.60 lakh crore AoN (MRFA Rafale, missiles, AS-HAPS) [S1].
• Prior DAC sittings: ~₹1.05 lakh crore under Buy (Indian-IDDM); ~₹54,000 crore; ₹1.45 lakh crore for 10 proposals; ₹2.23 lakh crore in 2023 [S6][S7][S8][S9].
• Apr 2025 — Inter-Governmental Agreement with France for 26 Rafale-Marine aircraft for Indian Navy [S5].
• MoD launched DAP 2020 comprehensive review to align with reforms agenda [S4].

7. Prelims Hooks

• DAC is the apex MoD body for capital acquisition, chaired by the Raksha Mantri [S1].
• DAC was constituted in 2001 after the Kargil Review Committee / GoM on national security.
• Acceptance of Necessity (AoN) = first-stage in-principle approval issued by DAC [S1][S3].
• DAP 2020 replaced DPP 2016; effective 01 October 2020 [S3].
• DAP 2020 mandates EMD for cases where AoN cost exceeds ₹100 crore [S3].
• MRFA = Multi Role Fighter Aircraft; aircraft chosen in Feb 2026 AoN = Rafale (Dassault Aviation, France) [S1].
• HAPS operate in the stratosphere (~18-22 km), solar-powered, for persistent ISR — AS-HAPS = Air-Ship-Based variant [S1].
• 26 Rafale-Marine acquired via IGA with France for the Indian Navy (not IAF) [S5].
• DAP 2020 categories (descending indigenisation priority): Buy (Indian-IDDM) → Buy (Indian) → Buy & Make (Indian) → Buy & Make → Buy (Global – Manufacture in India) → Buy (Global) [S3].
• DAP 2020 ethos: Atmanirbhar Bharat + Make in India [S3].

8. Mains Relevance

• GS-III: Defence — Indigenisation of technology and developing new technology; Security challenges and their management.
• GS-II: International Relations — India-France strategic partnership.
• Probable stems: 1. "Acceptance of Necessity is necessary but not sufficient for timely defence modernisation." Discuss with reference to DAC's recent ₹3.60 lakh crore clearance. 2. Examine how DAP 2020 operationalises Atmanirbhar Bharat in defence procurement. What gaps remain? 3. Evaluate the strategic significance of MRFA (Rafale) and HAPS in India's evolving air-power doctrine.

9. Related Topics to Study Next

• DAP 2020 — categories, indigenisation thresholds.
• Defence Industrial Corridors (UP & TN) — manufacturing ecosystem.
• iDEX / SRIJAN portal / Positive Indigenisation Lists — Atmanirbharta toolkit.
• Rafale-Marine IGA (2025) — naval aviation modernisation [S5].
• HAPS & stratospheric platforms — DRDO, ISRO civil-military overlap.
• Strategic Partnership Model (SPM) — for fighter manufacture in India.
• Kargil Review Committee / GoM 2001 — origins of DAC, DIA, CDS.
• Defence Budget FY 2025-26 — capex vs revenue split.

10. Common Errors / Trap Areas

• DAC ≠ DPB ≠ DPP/DAP — DAC is the apex body; Defence Procurement Board is below it; DAP/DPP is the procedure document.
• AoN is not a contract — actual procurement may take years; do not equate AoN value with capex outflow.
• Rafale (IAF) vs Rafale-Marine (Navy) — the Feb 2026 MRFA is for IAF; the 26 Rafale-M IGA (2025) is for Navy [S1][S5].
• HAPS ≠ satellite — HAPS are atmospheric platforms (~20 km), not in orbit.
• DAP 2020 effective date is 01 Oct 2020, not the date of unveiling.
• DAC chaired by Raksha Mantri, not the National Security Advisor or CDS.

11. Sources

• [S1] DAC clears Rs 3.60 lakh crore worth of capital acquisition proposals — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2227018 — (tier 1)
• [S2] DAP 2020 — Department of Defence — https://www.mod.gov.in/dod/news/defence-acquisition-procedure-dap-2020 — (tier 1)
• [S3] Defence Acquisition Procedure 2020 amended to promote Make in India & Aatmanirbharta — https://www.pib.gov.in/PressReleasePage.aspx?PRID=1819937 — (tier 1)
• [S4] MoD Initiates Comprehensive Review of DAP 2020 — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2137680 — (tier 1)
• [S5] IGA with France for 26 Rafale-Marine aircraft for Indian Navy — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2124851 — (tier 1)
• [S6] DAC clears 10 capital acquisition proposals worth ~Rs 1.05 lakh crore under Buy (Indian-IDDM) — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2141835 — (tier 1)
• [S7] DAC clears capital acquisition proposals worth over Rs 54,000 crore — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2113268 — (tier 1)
• [S8] DAC approves 10 capital acquisition proposals worth Rs 1.45 lakh crore — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2051323 — (tier 1)
• [S9] DAC approves capital acquisition proposals worth Rs 2.23 lakh crore — https://www.pib.gov.in/PressReleasePage.aspx?PRID=1981135 — (tier 1)