Defence forces get enhanced financial powers; procurement worth Rs 1.25 lakh crore to get faster clearance
New Delhi, June 4
In a major push to improve efficiency and accelerate defence procurement, the government on Thursday announced that it has significantly enhanced the delegation of financial powers across the armed forces, enabling faster decision-making and smoother execution of contracts.
The revised framework is expected to support procurement exceeding Rs 1.25 lakh crore through the revenue route, in line with current budgetary allocations.
Defence Minister Rajnath Singh released the revised Delegation of Financial Powers for the Defence Services in New Delhi on June 04.
The updated structure covers medical and works projects and introduces major enhancements aimed at strengthening operational efficiency at the field level.
According to the government, financial powers have been increased by up to 100 per cent, and in some cases more than doubled, allowing field commanders greater autonomy in taking swift decisions.
"This would further strengthen the operational efficiency of field commanders, and lead to faster conclusion of contracts and execution of projects," the ministry of Defence said.
A key highlight of the revision is the significant expansion of financial authority for indigenisation and research and development within the military ecosystem.
These powers have been doubled with the objective of boosting Aatmanirbharta in defence and reducing dependence on foreign original equipment manufacturers.
The revised framework also includes a 100 per cent increase in the ceiling for urgent operational requirements, along with enhanced special financial powers for Army, Air Force, and Naval commanders.
In addition, new provisions have been introduced to promote joint service procurement, allowing lead services to execute purchases with higher delegated authority than earlier norms.
The government has also introduced several new competent financial authorities to decentralise procurement of goods and services, further streamlining the decision-making structure within the defence establishment.
"Financial powers were last notified in 2021. The revision was necessitated due to the expansion in force level and to cater to the increased expenditure on operations and sustenance vis-à-vis the increase in budgetary allocation," the ministry mentioned.
— IANS
Reader Comments
Interesting approach. I've seen similar delegation in other countries. Let's hope this actually speeds up procurement and doesn't just create new layers of bureaucracy.
Finally some practical reform! Field commanders know the ground reality best. Giving them financial autonomy will ensure our jawans get what they need without endless delays. Well done, Rajnath ji!
Doubling the budget is good but I'm skeptical about implementation. We've seen many reforms announced but the ground reality remains the same. Hope this time it's different.
Great to see focus on joint procurement! The three services working together is crucial. Also happy to see emphasis on indigenisation - we need to stop being dependent on foreign vendors for everything.
The 100% increase in urgent operations ceiling is particularly noteworthy. It shows the government is taking the security situation seriously. Though I hope proper oversight mechanisms are in place to prevent misuse.
This is exactly what we needed. Our jawans shouldn't wait months for basic equipment approvals. Make in India + faster procurement = stronger forces. Jai Hind! 🚀
<
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.