Raksha Mantri Approves Increased Financial Powers For Field Commanders

10 Jun 2026 CW Team

The financial powers for indigenisation and research and development within the military ecosystem have been doubled to boost Aatmanirbharta in defence and to minimise dependency on foreign original equipment manufacturers. The revised delegation will facilitate procurement of more than Rs 1.25 tn through the revenue route under current year budgetary allocations. This reallocation is expected to support domestic industry and accelerate capability enhancement.

Special financial powers delegated to Army, Air Force and Naval commanders have been increased significantly, with a one hundred per cent rise in the total ceiling to meet urgent operational requirements. New provisions have been introduced to accelerate joint service procurement by the lead service with higher delegation than normal procurement arrangements. Several new Competent Financial Authorities have been established to decentralise procurement of goods and services and to expedite administrative processes.

Financial powers were last notified in 2021, and the revision was necessitated by expansion in force levels and higher expenditure on operations and sustenance alongside increased budgetary allocation. The revised delegation, together with the Defence Procurement Manual updated in October 2025, is intended to give a fillip to defence procurement through more expeditious decision making and timely availability of resources. Senior defence leadership, including the Chief of Defence Staff (CDS), the service chiefs and senior secretaries, attended the release.

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Raksha Mantri Shri Rajnath Singh approved and released a revised Delegation of Financial Powers for the Defence Services, including medical and works projects, in New Delhi on four June 2026. The enhancement in delegated financial powers has been made up to one hundred per cent and in some cases more than double. The change is intended to strengthen the operational efficiency of field commanders and to speed contract conclusion and project execution. The financial powers for indigenisation and research and development within the military ecosystem have been doubled to boost Aatmanirbharta in defence and to minimise dependency on foreign original equipment manufacturers. The revised delegation will facilitate procurement of more than Rs 1.25 tn through the revenue route under current year budgetary allocations. This reallocation is expected to support domestic industry and accelerate capability enhancement. Special financial powers delegated to Army, Air Force and Naval commanders have been increased significantly, with a one hundred per cent rise in the total ceiling to meet urgent operational requirements. New provisions have been introduced to accelerate joint service procurement by the lead service with higher delegation than normal procurement arrangements. Several new Competent Financial Authorities have been established to decentralise procurement of goods and services and to expedite administrative processes. Financial powers were last notified in 2021, and the revision was necessitated by expansion in force levels and higher expenditure on operations and sustenance alongside increased budgetary allocation. The revised delegation, together with the Defence Procurement Manual updated in October 2025, is intended to give a fillip to defence procurement through more expeditious decision making and timely availability of resources. Senior defence leadership, including the Chief of Defence Staff (CDS), the service chiefs and senior secretaries, attended the release.

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