Q. Consider the following statements regarding the Defence Acquisition Council (DAC):
1.It is the highest decision-making body in the Ministry of Defence, chaired by the Prime Minister of India.
2.One of the key functions of the DAC is to accord Acceptance of Necessity (AoN) for capital acquisition proposals and categorize them as ‘Buy’, ‘Buy & Make’, or ‘Make’.
3.All decisions of the DAC are legally binding on the states and must be implemented without any modifications.
Which of the above statements is/are correct?

[A] 1 only

[B] 2 and 3 only

[C] 1 and 3 only

[D] 2 only

Answer: D
Notes:

Explanation: Only 2

Statement 1 is incorrect: The Defence Acquisition Council (DAC) is the apex body for capital acquisitions in the Ministry of Defence, chaired by the Defence Minister.

Statement 2 is correct: It accords Acceptance of Necessity (AoN) for acquisition proposals and categorizes them as ‘Buy’, ‘Buy & Make’, or ‘Make’.

Statement 3 is incorrect: The DAC’s decisions pertain to central government defence procurement and are not binding on states, as defence is a Union subject. States do not implement DAC decisions.

Source: DD News

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