Urgent Capital Acquisition power for Cases upto Rs 300 crore given to Armed Forces

Urgent Capital Acquisition power for Cases upto Rs 300 crore given to Armed Forces

The Defence Acquisition Council (DAC), has entrusted the powers for advancing the Capital Acquisition Cases with an upper limit of Rs.300 crore on an urgent basis to the Indian Armed Forces.

Key Points:  

• The delegation of powers will help the armed forces to meet their rising operational requirements.
• The newly assigned powers will reduce the timelines in the procurement of arms and weapons and will help in making certain that orders are placed within six months, and deliveries are started within a year.
• The decision concerning this was taken on 15 July 2020 under the chairmanship of Defence Minister Rajnath Singh during the special DCA meeting.
• The special DCA meeting was held in view of the current security situation that is present along the Northern Borders.
• The decision will also strengthen the Indian Armed Forces and boost the defences of the country on the borders.

Note:

• DAC is the highest decision-making body of the Ministry of Defence which decides over the capital acquisition and new policies of the three armed forces and the Indian Coast Guard. The Defence Minister is the council’s Chairman.