Defence Minister Shri Rajnath Singh issued the revised delegation of financial powers for the Defence Services, including for medical and construction projects, in New Delhi on June 4, 2026. Financial powers have been increased by up to 100%, and in some cases more than doubled. This will further strengthen the operational capabilities of field commanders and expedite the conclusion of contracts and the execution of projects.
The financial powers allocated for indigenisation and research and development in the defence sector have been doubled to promote self-reliance by reducing dependence on foreign original equipment manufacturers. The revised allocation of financial powers will facilitate procurement of over Rs 1.25 lakh crore through the revenue route, as per the current year’s budgetary allocation.
The special financial powers delegated to Army/Air Force/Navy Commanders have been significantly enhanced, with the overall limits provided to meet urgent operational requirements increased by 100%. In addition to the enhancement of financial powers, new provisions have been incorporated to promote joint service procurement by the major services with higher jurisdiction than common procurement. Several new competent financial authorities have been established to decentralize procurement of goods and services.
The financial powers were last notified in 2021. The amendment became necessary to meet the increasing expenditure on operations and maintenance in response to the expansion of the armed forces and the increase in budget allocations. This revised delegation of financial powers, combined with the revised Defence Procurement Manual notified in October 2025, will accelerate defence procurement with quick decision-making. This will ensure timely availability of resources as per the requirements of the defence forces.
Chief of Defence Staff General NS Raja Subramani, Chief of Army Staff General Upendra Dwivedi, Chief of Naval Staff Admiral Krishna Swaminathan, Defence Secretary Shri Rajesh Kumar Singh, Secretary (Defence Production) Shri Sanjiv Kumar, Secretary (Ex-Servicemen Welfare) Smt. Sukriti Likhi, Secretary (Defence Finance) Shri Vishwajeet Sahai, Vice Chief of Air Staff Air Marshal Nagesh Kapoor, Controller General of Defence Accounts Shri Anugrah Narayan Das and other senior officers were present on the occasion. (PIB)
