Defence Minister Rajnath Singh has approved a revised framework for the delegation of financial powers to the Defence Services, significantly enhancing the spending authority of field commanders to strengthen operational efficiency and accelerate procurement processes.
The revised Delegation of Financial Powers, which covers procurement, medical services and works projects, was released in New Delhi on Thursday. According to the Ministry of Defence, the financial limits have been increased by up to 100 per cent, with some categories witnessing more than a two-fold rise.
The enhanced delegation is expected to enable quicker decision-making, faster execution of projects and timely procurement of equipment and services required by the armed forces.
A key feature of the revised framework is the doubling of financial powers for indigenisation and research and development initiatives within the military ecosystem. The move is aimed at promoting self-reliance in defence manufacturing by reducing dependence on foreign original equipment manufacturers and strengthening the country’s defence industrial base.
The Ministry said the revised financial powers will facilitate procurement exceeding ₹1.25 lakh crore through the revenue route based on the current budgetary allocations.
Special financial powers delegated to Army, Navy and Air Force commanders have also been substantially increased. The overall ceiling available to meet urgent operational requirements has been doubled, enabling commanders to respond more effectively to evolving operational needs.
To encourage greater integration among the armed forces, the revised framework introduces provisions for joint-service procurement through a lead service mechanism. Such procurements will enjoy higher financial delegation compared to normal procurement procedures.
The government has also introduced several new competent financial authorities to further decentralise the procurement of goods and services, allowing decisions to be taken at lower levels and reducing procedural delays.
The Ministry noted that financial powers were last revised in 2021. The latest revision takes into account the expansion of force levels, increased operational requirements and higher expenditure on sustenance and maintenance, alongside growth in defence budget allocations.
