Defence Minister Rajnath Singh Approves Major Increase in Financial Powers for Military Commanders
Move to accelerate defence procurement, boost indigenous R&D and strengthen operational preparedness
Defence minister Rajnath Singh releases the revised Delegation of Financial Powers for the Defence Services, including medical and works projects, in New Delhi on Friday.
New Delhi: Defence minister Rajnath Singh has approved a substantial enhancement in the financial powers delegated to the armed forces, a move aimed at accelerating procurement, improving operational readiness and strengthening India’s drive towards self-reliance in defence manufacturing.
The revised Delegation of Financial Powers for the Defence Services, including medical and works projects, was released in New Delhi on Friday. Under the revised framework, financial limits have been increased by up to 100 per cent across several categories, while some powers have been enhanced beyond two-fold.
The ministry of defence said the revised delegation would enable faster decision-making, quicker contract finalisation and more efficient execution of projects by empowering field commanders with greater financial autonomy.
A major focus of the reform is the promotion of indigenous defence capabilities. Financial powers related to indigenisation initiatives and research and development activities within the military ecosystem have been doubled, supporting the government’s Aatmanirbhar Bharat vision and reducing dependence on foreign original equipment manufacturers.
According to the ministry, the revised framework will facilitate procurement worth more than ₹1.25 lakh crore through the revenue route based on the current year’s budgetary allocations.
Special financial powers available to Army, Navy and Air Force commanders for urgent operational requirements have also been significantly enhanced. The overall ceiling for emergency operational procurements has been doubled, enabling commanders to respond more swiftly to evolving security requirements.
In another key reform, the government has introduced provisions to encourage joint-service procurement. Under the new framework, the lead service undertaking procurement on behalf of multiple services will enjoy enhanced financial delegation compared to normal procurement procedures, helping improve coordination and resource utilisation across the armed forces.
The revised powers also introduce additional competent financial authorities to decentralise procurement decisions and streamline the acquisition of goods and services.
The ministry noted that financial powers were last revised in 2021. The latest revision takes into account the expansion of force levels, higher operational expenditure requirements and increased budgetary allocations over the past five years.
Officials believe the revised delegation, coupled with the Defence Procurement Manual notified in October 2025, will significantly improve procurement efficiency and ensure timely availability of equipment, infrastructure and support systems required by the armed forces.
The announcement comes at a time when India is placing increasing emphasis on military modernisation, indigenous defence production and faster acquisition processes to enhance combat preparedness.
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 Rajesh Kumar Singh and other senior defence officials were present during the release of the revised framework.
