- To counter corruption and speed up decision- making in military procurement, the government of India in 2001 decided to set up an integrated DAC.
- It is headed by the Defence Minister.
- The DAC is responsible to give policy guidelines to acquisitions, based on long-term procurement plans.
- It also clears all acquisitions, which includes both imported and those produced indigenously or under a foreign license.
- The objective of the DAC is to ensure expeditious procurement of the approved requirements of the Armed Forces, in terms of capabilities sought, and time frame prescribed, by optimally utilizing the allocated budgetary resources.
- The structure of the council ensures equal representation to bureaucracy as well as armed forces, which means that there are in-built checks and balances in relation to procurement.
- The composition of the DAC is as follows:
a) Defence Minister: Chairman
b) Minister of State for Defence: Member
c) Chief of Army Staff: Member
d) Chief of Naval Staff: Member
e) Chief of Air Staff: Member
f) Defence Secretary: Member
g) Secretary Defence Research & Development: Member
h) Secretary Defence Production: Member
i) Chief of Integrated Staff Committees HQ IDS: Member
j) Director General (Acquisition): Member
k) Dy. Chief of Integrated Defence: Staff Member Secretary
- The decisions flowing from the DAC are to be implemented by the following three boards:
- Defence Procurement Board (which deals with purchases).- headed by the Defence Secretary.
- Defence Production Board (which supervises production from indigenous sources, like ordnance factories and equipment manufactured under a foreign license)- headed by the Secretary (Defence Production)
- Defence Research and Development Board- headed by the Secretary (Defence Research & Development)
- The Defence Procurement Board works out the details of all inductions, including procurement schedules and emergency purchases.