New Delhi: Raksha Mantri Rajnath Singh approved a major expansion of defence financial powers on June 4, allowing field commanders to make faster procurement decisions and improve operational efficiency. The revised delegation increases financial limits by up to 100 per cent, while some categories received even higher enhancements.
The Defence Ministry said the move would help commanders conclude contracts faster and execute projects more efficiently. The revised framework will also support procurement exceeding Rs 1.25 lakh crore through the revenue route based on the current budget allocation.
The government doubled financial limits for indigenisation and research and development within the military ecosystem. Officials said the step would strengthen self-reliance in defence production and reduce dependence on foreign original equipment manufacturers.
Special financial powers for Army, Navy and Air Force commanders also increased significantly. In addition, the government doubled the overall ceiling available for urgent operational requirements.
Defence financial powers revised for faster procurement
The revised defence financial powers introduce new provisions for joint-service procurement through a lead service. The government granted higher delegation for such procurements than under normal procedures.
The ministry also created several new competent financial authorities. These authorities will decentralise the procurement of goods and services and speed up decision-making across the armed forces.
Officials said the government last revised financial powers in 2021. The latest update became necessary because of expanded force requirements, rising operational expenditure and higher budget allocations.
The ministry said the revised framework, along with the Defence Procurement Manual issued in October 2025, would accelerate procurement processes. It added that the changes would ensure timely availability of equipment and resources required by the armed forces.
Chief of Defence Staff General NS Raja Subramani, Army Chief General Upendra Dwivedi, Navy Chief Admiral Krishna Swaminathan, senior defence officials and service representatives attended the event in New Delhi.
