Ministry of Defence
azadi ka amrit mahotsav g20-india-2023

Procurement of Defence Equipment

Posted On: 05 AUG 2022 2:22PM by PIB Delhi

Proposals for capital acquisition are progressed through a detailed process that commences with Ten years Integrated Capability Development Plan (ICDP), Five Years Defence Capability Acquisition Plan (DCAP) and two year roll over Annual Acquisition Plan (AAP). Approved plans are followed by Acceptance of Necessity (AoN) accorded by Services Procurement Board (SPB) chaired by CISC for cases upto Rs. 300 crore, Defence Procurement Board (DPB) chaired by Defence Secretary for cases having value more than Rs. 300 crore and upto Rs. 500 crore and Defence Acquisition Council (DAC) chaired by Raksha Mantri for cases beyond Rs. 500 crore. Post accord of AoN, tendering and contracting is undertaken by the Services/Ministry of Defence as per the delegated financial powers. In the period 2020-21 to 2022-23 (till 30th June, 2022), 59 AoNs amounting to Rs. 1,83,778.34 crore. have been accorded and 91 Contracts amounting to Rs. 1,19,045.3 crore have been concluded.

Capital acquisition of defence equipment is carried out as per provisions of Defence Acquisition Procedure (DAP). DAP-2020 lays down the timelines for completion of acquisition activities. Further, the activities are regularly monitored so as to ensure finalization of proposals and conclusion of contracts expeditiously.


This information was given by Raksha Rajya Mantri Shri Ajay Bhatt in a written reply to Shri Ashok Kumar Rawat in Lok Sabha today.



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