Govt gives DRDO more financial powers in major defence sector reform
New Delhi, June 29
Defence Minister Rajnath Singh on Monday released the Delegation of Financial Powers to DRDO, a major reform to enhance efficiency, accountability, and timely execution of strategic R&D projects in the defence sector.
The DFP-2026 aims to significantly enhance functional empowerment at various levels within the Department of Defence R&D. The revised framework addresses several critical requirements, including dedicated financial provisions for trial campaigns, tests and evaluation activities, authorisation for sanctioning pre-project R&D initiatives, and clear segregation of financial powers for grants-in-aid pertaining to Extra-Mural Research Projects, Defence Innovation Accelerator-Centres of Excellence, and Technology Development Fund projects under the respective schedules.
The minister said that DFP-2026 will facilitate faster production and induction of systems, platforms and technologies emerging from the R&D ecosystem into the Defence Forces. The new framework will foster stronger collaboration with the industry and academia, reinforcing the vision of Aatmanirbhar Bharat. It will contribute to enhanced self-reliance in defence technologies and strengthen the nation's defence preparedness, he added.
Chief of Defence Staff General N.S. Raja Subramani, Defence Secretary Rajesh Kumar Singh, who is holding additional charge of Secretary, Defence R&D and DRDO Chairman, Secretary, Defence Production, Sanjeev Kumar; Secretary, Ex-Servicemen Welfare, Sukriti Likhi; Controller General of Defence Accounts Anugraha Narayana Das, DG, Naval Systems & Materials, DRDO, R.V. Hara Prasad, DG, Resources & Management, Dr Ravindra Singh, Director, Directorate of Finance & Material Management Dr Maiya Din, and other senior officials were present during the event in the national capital.
The DRDO regularly transfers indigenous technologies to Indian public and private industries to boost the 'Make in India' initiative. Through Licensing Agreements for Transfer of Technology and the Technology Development Fund, the DRDO empowers MSMEs and startups to manufacture critical aerospace and defence equipment to bolster the preparedness of the armed forces.
— IANS
Reader Comments
Finally some real reform! As someone working in the defence sector, I know how frustrating it was to wait for months just to get approvals for test campaigns. This DFP-2026 framework should help our scientists focus on innovation rather than paperwork. Hope it translates into tangible results like the Tejas and BrahMos.
Interesting development. As someone who follows global defence news, I've always been impressed by India's potential in indigenous tech development. This move aligns well with the 'Make in India' initiative. Curious to see how this impacts collaboration with private sector and startups.
Having seen DRDO's work up close, I appreciate this move. But we must also ensure accountability. More financial power without proper oversight could lead to wastage. The segregation of powers for EMR and TDF projects is a good step, but we need strict monitoring mechanisms. With great power comes great responsibility!
This is exactly the kind of reform India needs. The defence sector is crucial for national security and economic growth. Giving DRDO more autonomy will help them compete globally. The focus on MSMEs and startups is particularly encouraging - that's where innovation thrives. Well done, GoI!
Good initiative but let's see how it works on ground. DRDO has many brilliant scientists but their projects often suffer from delays and cost overruns. Hope this financial delegation actually speeds things up rather than creating more confusion. Also, please focus on making our soldiers get world-class equipment on time! 🙏
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