New Delhi: Defence Minister Rajnath Singh on Thursday released the revised Delegation of Financial Powers for the Defence Services, significantly enhancing the financial authority of field commanders to accelerate procurement, improve operational readiness, and strengthen defence infrastructure development.
According to the Ministry of Defence, financial powers have been increased by up to 100% and in some cases, more than doubled. The move is aimed at enabling faster conclusion of contracts and quicker execution of projects across the armed forces.
The revised framework also doubles financial powers for indigenisation and research and development within the military ecosystem. This is intended to promote Aatmanirbharta in defence, reduce dependency on foreign original equipment manufacturers, and strengthen domestic capability development, according to an official statement.
The ministry stated that the revised delegation will facilitate procurement worth over Rs 1.25 lakh crore through the revenue route, based on current budgetary allocations.
Special financial powers for Army, Air Force, and Naval commanders have been significantly enhanced, along with a 100% increase in the ceiling for urgent operational requirements. The reforms are expected to improve responsiveness in critical operational situations.
The new framework also introduces provisions to promote joint-service procurement, allowing lead services to undertake acquisitions with higher delegated authority than existing norms. In addition, new Competent Financial Authorities have been created to further decentralise procurement of goods and services across the defence establishment.
The financial powers were last revised in 2021. The government said the latest revision was necessitated by the expansion of force levels and increased operational and sustenance expenditure, in line with higher budget allocations.
Officials said the revised delegation, along with the updated Defence Procurement Manual notified in October 2025, will streamline defence acquisition processes and enable faster decision-making, ensuring the timely availability of resources for the armed forces.
