# Defence Acquisition Council clears ₹2.12 lakh crore of proposals, 82% from Indian industry URL: https://upsc.help/current-affairs/2026-10-27/dac-aon-212-lakh-crore-oct/ Date: 27 October 2026 (2026-10-27) Source: The Hindu, Page 10 UPSC papers: GS3 Publisher: upsc.help (Pratidin), free and open-source UPSC Civil Services current affairs. Not affiliated with UPSC. Every fact was checked against the source reports by a separate review before publishing. **In one line:** On 26 October 2026 the Defence Acquisition Council accepted the need for about ₹2.12 lakh crore of new equipment, with about 82% to come from Indian industry. The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, on 26 October 2026 granted Acceptance of Necessity (AoN) to capital acquisition proposals worth about ₹2,12,000 crore for the Army, Navy and Air Force. The Defence Ministry said about 82% of the procurement will be made from Indian industry. AoN is the DAC's in-principle approval of a requirement: it is the first formal step in buying a weapon system, after which the services issue tenders, run trials and negotiate contracts. It is not a contract and does not by itself spend money. For the Army, the list includes High Mobility Vehicles for difficult terrain, a Self-Propelled Tracked Gun System to give mechanised formations matching mobility and firepower, a Gun Shot Response System for real-time situational awareness, Light Multi Role Helicopters (for the Army and the Air Force) for reconnaissance and surveillance, combat, search and rescue, and disaster relief, a Very Short-Range Air Defence System against small new-generation aerial threats, and a platform-based Counter Unmanned Aerial System to protect tanks. Drone systems include surveillance UAVs, a long-range unmanned aerial system, an integrated surveillance and strike system and a long-range kamikaze drone system. The Navy gets an Active Offboard Decoy System to strengthen anti-missile defence and other indigenously designed and built platforms. The Air Force gets helicopters including Special Utility Helicopters, air defence systems, weapons and a Mobile X-Band Doppler Weather Radar System for weather surveillance in forward areas. The approvals continue a run of large DAC clearances: nearly ₹3.60 lakh crore on 12 February 2026, including Rafale fighters under the Multi-Role Fighter Aircraft plan, and ₹2.38 lakh crore on 27 March 2026, when the DAC was reported to have approved 55 proposals worth ₹6.73 lakh crore during 2025-26. The list's emphasis on counter-drone systems, loitering (kamikaze) munitions and very short-range air defence shows the priority now given to small aerial threats. The 82% domestic share fits the push for self-reliance in defence, but large AoN totals do not show how fast contracts will be signed or how much of each system's value is actually made in India. ## Prelims facts - On 26 October 2026 the DAC granted AoN to proposals worth about ₹2.12 lakh crore; about 82% will be procured from Indian industry. - AoN is in-principle approval of a requirement and the first step in capital acquisition; tenders, trials, negotiations and contracts follow. - The DAC, chaired by the Defence Minister, was set up in 2001 after the Group of Ministers' review of national security that followed the Kargil War. - Army items include a platform-based Counter-UAS to protect tanks, VSHORADS, Light Multi Role Helicopters and a long-range kamikaze drone system. - The Navy's Active Offboard Decoy System is meant to strengthen anti-missile defence; the Air Force gets a Mobile X-Band Doppler Weather Radar System for forward areas. ## Quick recall - **Who chairs the Defence Acquisition Council?** The Union Defence Minister. - **When was the DAC set up, and why?** In 2001, after the Group of Ministers' recommendations on reforming the national security system following the Kargil War. - **What is an AoN?** Acceptance of Necessity: the DAC's in-principle approval of a capital acquisition requirement, the first step before tendering. - **Value of AoNs granted on 26 October 2026?** About ₹2,12,000 crore (₹2.12 lakh crore). - **Share to be sourced from Indian industry?** About 82%. - **What is the Navy's Active Offboard Decoy System for?** To enhance the credibility of anti-missile defence, says the Defence Ministry. - **What will the platform-based Counter-UAS do?** Enhance the survivability of tanks against drones on the modern battlefield. - **What did the DAC approve on 12 February 2026?** Proposals worth nearly ₹3.60 lakh crore, including Rafale fighters under the Multi-Role Fighter Aircraft plan. ## Prelims practice question With reference to the Defence Acquisition Council (DAC), consider the following statements: 1. It is chaired by the Union Defence Minister. 2. An Acceptance of Necessity (AoN) granted by it amounts to a signed contract with the vendor. 3. It was set up in 2001 following the Group of Ministers' recommendations after the Kargil War. Which of the statements given above are correct? (a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3 Answer: (c) 1 and 3 only. Statement 1 is correct. Statement 3 is correct: the DAC was formed in 2001 after the Group of Ministers' report on reforming the national security system. Statement 2 is wrong: AoN is in-principle approval of a requirement, the first step; tendering, trials, negotiation and the contract come later. ## UPSC previous-year questions this connects to - UPSC Mains 2014, GS3: Foreign Direct Investment (FDI) in the defence sector is now set to be liberalized: What influence this is expected to have on Indian defence and economy in the short and long run? (https://upsc.help/pyq/q354-foreign-direct-investment-fdi-defence-sector-now/) How to use this story in the answer: Use the October 2026 approvals to show the long-run payoff sought from opening defence manufacturing: domestic industry supplying most of a large procurement round. - UPSC Mains 2024, GS3: India has a long and troubled border with China and Pakistan fraught with contentious issues. Examine the conflicting issues and security challenges along the border. Also give out the development being undertaken in these areas under the Border Area Development Programme (BADP) and Border Infrastructure and Management (BIM) Scheme. (https://upsc.help/pyq/q317-india-has-long-troubled-border-china-pakistan/) How to use this story in the answer: Cite the October 2026 approvals as recent capability steps for the land borders when discussing security challenges and development efforts. - UPSC Mains 2022, GS3: What are the maritime security challenges in India? Discuss the organisational, technical and procedural initiatives taken to improve maritime security. (https://upsc.help/pyq/q344-maritime-security-challenges-india-organisational-technical-procedural/) ## Mains practice question Large approvals by the Defence Acquisition Council signal intent but not delivery. Discuss the significance of the October 2026 approvals for India's defence preparedness and indigenisation, and the gaps between approval and acquisition. (150 words) ### Model answer On 26 October 2026 the Defence Acquisition Council (DAC) granted Acceptance of Necessity (AoN) to proposals worth about ₹2.12 lakh crore, with about 82% to be sourced from Indian industry. ## Significance - **New threats:** platform-based Counter-UAS for tanks, VSHORADS and a long-range kamikaze drone system respond to drone-heavy warfare. - **Mobility and firepower:** self-propelled tracked guns, High Mobility Vehicles and Light Multi Role Helicopters. - **Navy and Air Force:** an Active Offboard Decoy System for anti-missile defence; a Mobile X-Band Doppler Weather Radar for forward areas. - **Indigenisation:** an 82% domestic share supports self-reliance and the defence industrial base. ## Gaps between approval and acquisition - AoN is only the first step; tenders, trials and negotiations can take years. - Large AoN totals (₹3.60 lakh crore in February and ₹2.38 lakh crore in March 2026) must be matched by capital budgets. - 'Indian industry' sourcing does not guarantee indigenous design or components. Time-bound contracting and tracking of real indigenous content will decide whether these approvals become capability. ## The basics ## Why this matters India spends a large share of its defence budget on buying new equipment, and every major purchase starts at one meeting: the Defence Acquisition Council (DAC). Knowing what the DAC does, and what its approvals do and do not mean, helps you read every defence headline correctly. ## What the DAC is The DAC was set up in 2001, after the Group of Ministers reviewed the national security system following the Kargil War of 1999. It is the Defence Ministry's highest decision-making body on procurement, chaired by the Defence Minister, with the Chief of Defence Staff, the three service chiefs, the Defence Secretary and senior officials for finance, production and acquisition. See Defence Acquisition Council. ## What an AoN is Acceptance of Necessity (AoN) is the DAC's in-principle approval that the forces need a capability. It also fixes the route of purchase, such as buying from Indian or foreign vendors. It is the start of the journey, not the end. See Acceptance of Necessity. ## What was approved on 26 October 2026 ## Why drones dominate the list Small, cheap drones can now spot and strike tanks and troops. Armies answer with Counter-drone systems and loitering munitions: layered defences against drones and their own long-range drones that can loiter and then dive onto a target. The test is conversion: how many AoNs turn into contracts on time, and how much real design and manufacture happens in India. ## Sources - https://www.pib.gov.in/PressReleseDetailm.aspx?PRID=2328486&=&lang=2&=®=48 - https://www.theweek.in/news/defence/2026/10/26/kamikaze-drones-attack-ready-helicopters-missile-defences-inside-indias-rs-212-lakh-crore-defence-acquisition-plan.html - https://vajiramandravi.com/current-affairs/what-is-defence-acquisition-council - https://www.newsonair.gov.in/dac-clears-proposals-of-nearly-3-60-lakh-cr-to-enhance-capabilities-of-armed-forces - https://www.newsonair.gov.in/defence-minister-rajnath-singh-clears-proposals-worth-over-two-lakh-crore-to-augment-defence-capabilities