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Defence Minister Rajnath Singh on Thursday approved a significant enhancement in the financial powers of military commanders, including a two-fold increase in several spending limits, aimed at speeding up procurement, doubling powers for indigenisation and R&D, and improving operational readiness and strengthening indigenous defence capabilities.
The revised Delegation of Financial Powers for the Defence Services, covering procurement, medical expenditure and works projects, was released by the Defence Minister in the presence of senior military and defence ministry officials.
According to the Ministry of Defence, the revised framework increases financial powers by up to 100 per cent across several categories, while some delegations have been raised by more than double. The move is expected to enable field commanders to conclude contracts and execute projects more quickly, reducing procedural delays in meeting operational requirements.
A key feature of the revision is the substantial enhancement of financial powers linked to indigenisation and research and development. The Ministry said these powers have been doubled to support the government’s push for defence self-reliance and reduce dependence on foreign original equipment manufacturers (OEMs).
Officials said the revised powers would facilitate procurement worth more than Rs 1.25 lakh crore through the revenue route, in line with the current year’s budgetary allocations.
The government has also significantly increased the special financial powers available to Army, Navy and Air Force commanders for urgent operational requirements. The overall ceiling under these provisions has been doubled, providing greater flexibility for military formations to address immediate operational needs.
In a move aimed at promoting greater integration among the armed forces, the revised framework introduces provisions for joint-service procurement, allowing a lead service to undertake acquisitions on behalf of the others with enhanced financial authority.
The Ministry has also expanded the number of Competent Financial Authorities (CFAs) to decentralise the procurement of goods and services, a step expected to shorten approval timelines and improve efficiency across the defence establishment.
The last revision of financial powers was notified in 2021. Defence Ministry officials said the latest review was necessitated by the expansion of force levels, rising operational expenditure and higher budgetary allocations over the past five years.
The revised delegation comes months after the notification of the updated Defence Procurement Manual 2025. It is expected to complement ongoing efforts to streamline acquisition processes and accelerate decision-making within the armed forces.
Team BharatShakti
