Defence Minister Rajnath Singh has approved a significant enhancement in the financial powers of field commanders, enabling quicker decision-making and faster defence procurements. The move, announced on Thursday, is aimed at strengthening the military's operational efficiency by doubling the financial ceiling for commanders across the three services.
Revised Delegation of Financial Powers
During a meeting on the approval of enhanced financial powers for revenue-related procurement, Singh, along with Chief of Defence Staff General NS Raja Subramani, Army Chief General Upendra Dwivedi, Navy Chief Admiral Krishna Swaminathan, and Defence Secretary Rajesh Kumar Singh, released the revised delegation of financial powers for defence services, including medical and works projects.
The enhancement in financial powers has been made up to 100%, and in some cases even more than double. This will further strengthen the operational efficiency of field commanders and lead to faster conclusion of contracts and execution of projects, the defence ministry said in a statement.
Impact on Procurement
The revised delegation will facilitate procurement of more than Rs 1.25 lakh crore through the revenue route, as per current year budgetary allocations. Special financial powers delegated to army, air force, and naval commanders have been increased significantly, along with a 100% increase in the total ceiling provided to meet urgent operational requirements.
New provisions have been included to promote joint service procurement by the lead service with higher delegation than normal procurement. Many new competent financial authorities have been introduced to decentralise the procurement of goods and services.
Boosting Indigenisation
The financial powers, last notified in 2021, delegated for indigenisation and R&D within the military ecosystem have been doubled to boost aatmanirbharta in defence by minimising dependency on foreign original equipment manufacturers, the statement said.
The revision was necessitated due to the expansion in force level and to cater to the increased expenditure on operations and sustenance vis-a-vis the increase in budgetary allocation.
Streamlined Decision-Making
This revised delegation in financial powers, along with the revised defence procurement manual notified in October 2025, will give a fillip to defence procurement with expeditious decision-making. This will lead to timely availability of resources as per the needs of the defence forces.
