Raksha Mantri approves major revision in Defence financial powers
NEW DELHI, June 4 (TNT) : Raksha Mantri Rajnath Singh has released the revised Delegation of Financial Powers for the Defence Services, covering medical and works projects, here on Thursday.
The revised framework significantly enhances financial delegation across the armed forces, with increases of up to 100 percent and, in certain cases, more than doubling of existing powers.
The move is aimed at strengthening operational efficiency at the level of field commanders and enabling faster conclusion of contracts and execution of defence projects.
According to the revised provisions, financial powers delegated for indigenisation and Research & Development within the military ecosystem have been doubled.
The objective is to further boost Aatmanirbharta in defence by reducing dependence on Foreign Original Equipment Manufacturers (OEMs) and encouraging domestic innovation and production.
The updated delegation framework is expected to facilitate procurement worth more than ₹1.25 lakh crore through the revenue route, aligned with current-year budgetary allocations.
Special financial powers granted to Army, Air Force, and Naval commanders have been significantly enhanced, along with a 100 percent increase in the overall ceiling for meeting urgent operational requirements.
The revised structure also introduces new provisions to promote joint-service procurement, allowing lead services to undertake consolidated acquisitions with higher delegated authority than standard procurement channels.
In addition, several new Competent Financial Authorities (CFAs) have been introduced to further decentralise procurement of goods and services across the defence establishment, enabling faster decision-making and improved efficiency.
Officials noted that the last revision of financial powers was carried out in 2021.
The latest overhaul was necessitated due to expansion in force levels and rising expenditure on operations and sustenance, in line with increased budgetary allocations.
The revised framework, together with the updated Defence Procurement Manual notified in October 2025, is expected to streamline defence procurement, ensure timely availability of critical resources, and improve responsiveness to operational requirements.
The event was attended by Chief of Defence Staff General NS Raja Subramani, Chief of the Army Staff General Upendra Dwivedi, Chief of the Naval Staff Admiral Krishna Swaminathan, Defence Secretary Shri Rajesh Kumar Singh, Secretary (Defence Production) Shri Sanjeev Kumar, Secretary (Ex-servicemen Welfare) Smt Sukriti Likhi, Secretary (Defence Finance) Shri Vishvajit Sahay, Vice Chief of the Air Staff Air Marshal Nagesh Kapoor, Controller General of Defence Accounts Shri Anugraha Narayana Das, and other senior officials.
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