DAC clears proposals worth Rs 2.38 lakh crore to augment defence capabilities

1. At a Glance

Defence Acquisition Council (DAC) — apex MoD body for capital acquisition — granted Acceptance of Necessity (AoN) worth ~Rs 2.38 lakh crore on 27 March 2026 [S1].
Headline systems cleared for the Indian Army: Dhanush Gun System, Air Defence Tracked System, Armoured Piercing Tank Ammunition, High Capacity Radio Relay, Runway Independent Aerial Surveillance System [S1].
Relevant for UPSC under GS-III (Internal Security, Defence indigenisation) and Prelims (defence terminology, DAP-2020, Aatmanirbhar Bharat).

DAC meeting chaired by Raksha Mantri Rajnath Singh on 27 March 2026 accorded AoN to multi-service proposals worth ~Rs 2.38 lakh crore [S1].
Reinforces FY 2025-26 record: AoN for 55 proposals worth Rs 6.73 lakh crore; capital procurement contracts signed for 503 proposals worth Rs 2.28 lakh crore — highest ever in a single fiscal [S2].

DAC constituted in 2001 post-Kargil Review Committee (1999) and Group of Ministers recommendations, to streamline higher defence procurement [S1].
Operates under the Defence Acquisition Procedure (DAP) 2020 (successor to DPP-2016), institutionalising Buy (Indian-IDDM) as the topmost priority category.
Prior major clearances: Rs 3.60 lakh crore (single sitting) in 2025; Rs 2.23 lakh crore (Nov 2023); Rs 84,560 crore (Feb 2024) [S2].

Chair: Raksha Mantri (Defence Minister) [S1].
Members: Service Chiefs, Defence Secretary, Secretary (Defence Production), Secretary (Defence R&D)/Chairman DRDO, CISC, DG (Acquisition), Finance Adviser (Defence Services).
Parent ministry: Ministry of Defence; governed by DAP-2020.
Function: Grants Acceptance of Necessity (AoN) — first stage of capital procurement (not a contract).
Total value cleared (27 Mar 2026): Rs 2.38 lakh crore [S1].
Army systems cleared: Air Defence Tracked System (real-time AD Control & Reporting); High Capacity Radio Relay (fail-proof comms); Dhanush Gun System (155mm/45 calibre, indigenised Bofors derivative, longer range artillery); Armoured Piercing Tank Ammunition; Runway Independent Aerial Surveillance System [S1].
Indian Coast Guard: AoN for Heavy Duty Air Cushion Vehicles (Hovercraft) — high-speed coastal patrolling, SAR, reconnaissance, logistics [S2].

Strategic / Security: Air Defence Tracked System plugs short-range air-defence gap; Runway-Independent surveillance addresses ISR needs in contested airfield scenarios; Hovercraft strengthen coastal security post-26/11 architecture [S1][S2].
Economic / Aatmanirbharta: Dhanush is an OFB/AWEIL product — embodies indigenisation; aligns with Buy (Indian-IDDM) preference under DAP-2020; supports domestic defence MSME ecosystem [S1].
Scientific / Technological: Dhanush is India's first indigenously upgraded 155mm/45 cal towed howitzer with electronic suite; Runway-Independent UAS reflects shift to multi-rotor/VTOL ISR platforms.
Administrative: AoN is only the first gate — followed by RFP, trials, CNC, CFA approval, contract signing; historical AoN-to-contract conversion remains a bottleneck.
Geopolitical: Acquisitions in context of two-front threat (China LAC, Pakistan LoC) and Indo-Pacific maritime expansion.

27 Mar 2026: DAC AoN of Rs 2.38 lakh crore [S1].
FY 2025-26: 55 proposals worth Rs 6.73 lakh crore AoN'd; 503 contracts worth Rs 2.28 lakh crore signed — record [S2].
2025: DAC cleared Rs 3.60 lakh crore in single sitting (largest-ever) [S2].
Sept 2024: 10 proposals worth ~Rs 1.05 lakh crore cleared under Buy (Indian-IDDM) [S2].

DAC constituted in 2001 following Kargil Review Committee recommendations.
DAC is chaired by the Raksha Mantri (Defence Minister) — not the PM, not CDS [S1].
Acceptance of Necessity (AoN) = first step of capital acquisition; does NOT mean contract signed.
Governing procedure: Defence Acquisition Procedure (DAP) 2020 (replaced DPP-2016).
Buy (Indian-IDDM) = Indigenously Designed, Developed and Manufactured — top priority in DAP-2020.
Dhanush = 155mm × 45 calibre towed howitzer, indigenised from Bofors design, produced by Advanced Weapons & Equipment India Ltd (AWEIL) — an OFB-successor DPSU.
DAC sitting on 27 March 2026 cleared Rs 2.38 lakh crore [S1].
FY 2025-26 contracts signed: Rs 2.28 lakh crore across 503 proposals — record high [S2].
Hovercraft / Air Cushion Vehicles AoN'd for Indian Coast Guard (under MoD, not MHA) [S2].
Army systems list: AD Tracked System, APTAM, HCRR, Dhanush, Runway-Independent UAS [S1].

GS-III: "Various Security Forces and Agencies and their Mandate"; "Defence — indigenisation of technology and developing new technology".
GS-II: Government policies/interventions (Aatmanirbhar Bharat in defence).
Probable stems: 1. "Discuss how the Defence Acquisition Procedure 2020 operationalises Aatmanirbhar Bharat in capital acquisition. Examine the role of DAC in this framework." 2. "Capital procurement in Indian defence is plagued by long AoN-to-contract timelines. Critically analyse with recent examples." 3. "Indigenous artillery modernisation has become central to India's land warfare doctrine. Comment."

DAP-2020 — primary procurement rulebook.
iDEX & TDF schemes — innovation pipeline feeding DAC.
Defence Industrial Corridors (UP & TN) — manufacturing backbone.
SRIJAN portal & Positive Indigenisation Lists — import-substitution architecture.
CDS & Department of Military Affairs (DMA) — tri-service integration interface.
Ordnance Factory Board corporatisation (2021) — 7 DPSUs incl. AWEIL (maker of Dhanush).
Defence Exports target (Rs 50,000 cr by 2029) — demand-side complement.
Strategic Partnership Model — alternative procurement route.

DAC ≠ DPB (Defence Planning Board) ≠ DAB (Defence Acquisition Board); DAC is the apex body.
AoN is not a contract — aspirants confuse approval-in-principle with actual procurement.
Dhanush (155mm towed howitzer) ≠ ATAGS (DRDO-developed) ≠ K9 Vajra (L&T/Hanwha self-propelled).
DAP-2020 priority order is Buy (Indian-IDDM) > Buy (Indian) > Buy & Make (Indian) > Buy & Make > Buy (Global – Manufacture in India) > Buy (Global) — IDDM is on top, not Buy (Indian).
Indian Coast Guard sits under MoD, not MHA — common GK trap.

[S1] DAC clears proposals worth Rs 2.38 lakh crore to augment defence capabilities — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2246125 — (tier 1)
[S2] PIB Press Releases on DAC FY 2025-26 clearances (Rs 3.60 lakh cr, Rs 1.05 lakh cr Buy-IDDM, Rs 67,000 cr) — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2227018 ; https://www.pib.gov.in/PressReleasePage.aspx?PRID=2141835 ; https://www.pib.gov.in/PressReleasePage.aspx?PRID=2152742 — (tier 1)