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Consider the following statement about the Defence Acquisition Council. Identify the correct statement(s).1. Raksha Mantri Shri Rajnath Singh on Novem
Question

Consider the following statement about the Defence Acquisition Council. Identify the correct statement(s).

1. Raksha Mantri Shri Rajnath Singh on November 30, 2023, accorded approval in respect of Acceptance of Necessity (AoNs) for various Capital Acquisition Proposals amounting to Rs 2.23 lakh crore.

2. Acquisition worth Rs 2.20 lakh crore (98% of total AoN amount) will be sourced from domestic industries.

A.

Neither 1 nor 2

B.

Both 1 and 2

C.

2 only

D.

1 only

Correct option is B

The correct answer is: (b) Both 1 and 2
Explanation:
On November 30, 2023, the Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, approved Acceptance of Necessity (AoNs) for capital acquisition proposals totaling Rs 2.23 lakh croreNotably, 98% of this amount, equating to Rs 2.20 lakh crore, is designated to be sourced from domestic industries, aligning with the 'Aatmanirbharta' initiative to boost indigenous defence manufacturing.
Information Booster:
  • The DAC approved procurement of 97 Tejas Mk-1A fighter jets and 156 Prachand Light Combat Helicopters from Hindustan Aeronautics Limited (HAL).

  • AoNs were granted for Medium Range Anti-Ship Missiles for the Indian Navy and Towed Gun Systems to replace aging artillery in the Indian Army.

  • The DAC also approved upgrades for Su-30MKI aircraft and procurement of anti-tank munitions and automatic target trackers for T-90 tanks.

  • A significant amendment mandates a minimum of 50% indigenous content in all procurement categories, excluding maintenance contracts.

  • To encourage MSMEs and startups, procurement cases with AoN costs up to Rs 300 crore will consider these entities without stringent financial criteria.

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