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Rajnath Singh Unveils Revised Financial Powers for Faster Procurement
The ministry said financial powers have been raised by up to 100% to speed contracts, joint procurement and projects across the armed forces.
On Thursday, Defence Minister Rajnath Singh released a revised framework for the Delegation of Financial Powers for Defence Services in New Delhi, covering medical and works projects to strengthen operational efficiency at the field level.
The Ministry stated the update was necessitated by expanding force levels, increased operational expenditure, and higher sustenance requirements since the last major revision of Financial Powers in 2021.
Financial powers available to military authorities have increased by up to 100 percent, facilitating procurement worth over Rs 1.25 lakh crore, while the Ministry expanded Competent Financial Authorities for decentralized decision-making.
To further the Aatmanirbhar Bharat initiative, the Ministry doubled financial powers for indigenization and research and development to reduce dependence on foreign Original Equipment Manufacturers and encourage joint procurement among the Army, Navy, and Air Force.
Chief of Defence Staff General Anil Chauhan, Chief of the Army Staff General Upendra Dwivedi, and Chief of the Naval Staff Admiral Krishna Swaminathan attended the release, which integrates with the updated Defence Procurement Manual from October 2025 to streamline acquisition procedures.