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 Financial Powers framework, 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 Rs1.25 lakh crore through the revenue route based on the current budgetary allocations.This will go a long way in supporting indigenization in the defence sector, with participation of private players, including MSMEs and Startups. The financial power given for execution of works projects has been doubled to facilitate faster execution and to ensure its timely completion, said the Minister.
Newsinc24 Team





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