Defence Ministry doubles financial powers for military commanders

New Delhi, June 4. In a significant move aimed at enhancing operational preparedness and expediting defence procurement, Defence Minister Rajnath Singh on June 4 unveiled the revised Delegation of Financial Powers for the Armed Forces, substantially increasing spending authority for military commanders and key defence establishments.

The revised framework, released in New Delhi, raises financial powers by up to 100 percent – and in some cases by more than double – enabling field commanders to conclude contracts faster and execute critical projects with greater efficiency.

A key feature of the revised delegation is the doubling of financial powers related to indigenisation and research and development within the military ecosystem. The move is intended to strengthen the government’s ‘Aatmanirbhar Bharat’ (Self-reliant India) initiative in the defence sector by reducing dependence on foreign original equipment manufacturers (OEMs) and encouraging indigenous capability development.

According to the Ministry of Defence, the enhanced powers are expected to facilitate procurement worth more than ₹1.25 lakh crore through the revenue route based on current budgetary allocations.

The revised framework also significantly increases the special financial powers available to Army, Navy and Air Force commanders for meeting urgent operational requirements. The overall ceiling for such emergency procurements has been doubled, providing greater flexibility to the services in addressing time-sensitive operational needs.

To further streamline acquisitions, the government has introduced provisions promoting joint procurement by a designated lead service. Such procurements will enjoy higher delegated powers than those available under normal procurement procedures. Several new competent financial authorities have also been created to decentralise the procurement of goods and services and reduce delays in decision-making.

The last revision of financial powers was carried out in 2021. The Defence Ministry said the latest update became necessary due to the expansion of force levels, rising operational expenditure and increased budgetary allocations for defence.

Officials said the revised financial powers, when read alongside the updated Defence Procurement Manual issued in October 2025, are expected to accelerate procurement processes, improve efficiency in resource allocation and ensure timely availability of equipment and services required by the armed forces.

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 Rajesh Kumar Singh and other senior officials from the Ministry of Defence and the armed forces.