Ministry of Defence Fully Utilises Rs 1.86 tn Capital Budget

03 Apr 2026 CW Team

The original appropriation for capital expenditure was Rs 1.80 tn, which the Ministry of Finance augmented in view of expenditure pace during the first two quarters and the increased requirements of the forces for modernisation following Operation Sindoor. The adjustment aimed to maintain continuity of critical acquisition programmes.

A significant portion of expenditure was directed to aircraft and aero engines, followed by land systems, electronic warfare equipment, armaments, ship building, aviation stores and projectiles. These investments underpinned capability enhancement and sustained supply chains for domestic and partner industry.

Effective utilisation of capital expenditure is expected to aid infrastructural development in border areas and support economic growth through its multiplier effect on capital formation and the generation of employment opportunities. Timely releases and contract awards contributed to local production and ancillary sector activity.

In FY 2025-26 the Ministry accorded Acceptance of Necessity (AoN) for 109 proposals amounting to Rs 6.81 tn, compared with 56 proposals worth Rs 1.76 tn in FY 2024-25. Capital procurement contracts for 503 proposals amounting to Rs 2.28 tn were signed in FY 2025-26.

Looking ahead, the Ministry has been allocated Rs 2.19 tn for FY 2026-27 under the capital head at the budget estimate stage, representing a hike of 22 per cent and intended to augment modernisation and strengthening of the armed forces. The ministry presented full utilisation in the current year as a marker of improved financial management and procurement momentum.

The Ministry of Defence (MoD) reported full utilisation of its capital outlay of Rs 1.86 tn for defence services for FY 2025-26 at the revised estimates stage, achieved through the joint efforts of MoD (Finance), the Acquisition Wing, the Defence Services and the Defence Accounts Department. The milestone follows complete utilisation in FY 2024-25. Overall utilisation including MoD civil expenditure and pension stood at 99.62 per cent. The original appropriation for capital expenditure was Rs 1.80 tn, which the Ministry of Finance augmented in view of expenditure pace during the first two quarters and the increased requirements of the forces for modernisation following Operation Sindoor. The adjustment aimed to maintain continuity of critical acquisition programmes. A significant portion of expenditure was directed to aircraft and aero engines, followed by land systems, electronic warfare equipment, armaments, ship building, aviation stores and projectiles. These investments underpinned capability enhancement and sustained supply chains for domestic and partner industry. Effective utilisation of capital expenditure is expected to aid infrastructural development in border areas and support economic growth through its multiplier effect on capital formation and the generation of employment opportunities. Timely releases and contract awards contributed to local production and ancillary sector activity. In FY 2025-26 the Ministry accorded Acceptance of Necessity (AoN) for 109 proposals amounting to Rs 6.81 tn, compared with 56 proposals worth Rs 1.76 tn in FY 2024-25. Capital procurement contracts for 503 proposals amounting to Rs 2.28 tn were signed in FY 2025-26. Looking ahead, the Ministry has been allocated Rs 2.19 tn for FY 2026-27 under the capital head at the budget estimate stage, representing a hike of 22 per cent and intended to augment modernisation and strengthening of the armed forces. The ministry presented full utilisation in the current year as a marker of improved financial management and procurement momentum.

Resources

13 May 2026

Anant Raj Appoints Anish Sarin as Director

Anant Raj has appointed Anish Sarin as Director on its Board, marking a key step in the company’s leadership transition and long-term growth strategy. The announcement was made during the company’s Q4 and FY26 results declaration, reflecting the induction of next-generation leadership as the company expands across real estate, cloud infrastructure and data centre businesses. Anish Sarin, grandson of veteran industrialist Ashok Sarin, represents the emerging leadership at Anant Raj. Educated at Regent’s University London, he brings a global business outlook along with a strong focus on t..

Technology

13 May 2026

Vedanta eyes AI-led value growth

Vedanta Group expects to unlock USD 300–400 million in additional value over the next three years through large-scale deployment of AI-led industrial technologies across its businesses. The group said its V-Spark DeepTech Ventures platform has already delivered nearly four times return on investment since inception.Vedanta is scaling AI, predictive analytics, Industrial Internet of Things, digital twins, machine learning, automation and connected manufacturing technologies across its metals, mining, energy and industrial operations. These deployments are aimed at improving productivity, lowe..

Infrastructure Urban

13 May 2026

Hindustan Zinc inks pact with Group Nirmal

Hindustan Zinc has signed an MoU with Group Nirmal to set up a zinc wire manufacturing facility at its Zinc Industrial Park in Khankhala, Bhilwara district, Rajasthan. The partnership will expand downstream manufacturing activity and support value-added zinc applications in India.Under the agreement, Group Nirmal will manufacture zinc wire products using Hindustan Zinc’s Special High Grade zinc. The products will cater to infrastructure, renewable energy, automotive and industrial engineering sectors.Zinc wire is used in thermal spray coating and metallising processes to protect steel struct..