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.

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

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.

Real Estate

07 Jul 2026

Pecan Realty Completes Rs 1.5 Billion Transactions

Pecan Realty has recently completed four institutional transactions worth over Rs 1.5 billion over the past two years, strengthening its position as an execution-led real estate platform. The deals include resolution-led acquisitions, structured finance transactions and capital partnerships across its development portfolio.The transactions covered acquisitions through the National Company Law Tribunal process and helped provide repayment or exits to both private and public sector lenders. The company said the deals demonstrate its ability to resolve complex project situations, work with instit..

Real Estate

07 Jul 2026

SNN Estates Expands North Bengaluru Housing Project

SNN Estates has announced an expansion of its SNN Estates Felicity residential project in North Bengaluru following strong buyer demand, with 75 per cent of the first-phase inventory sold within three days of launch.The developer will add 76 apartments in the new phase, taking the project's estimated revenue potential to around Rs 1,000 crore upon completion of Phase 2.Spread across 6.5 acres in Rachenahalli, near Manyata Tech Park, the project comprises 604 apartments in 1.5, 2, 2.5, 3 and 4 BHK configurations. The development includes a 50,000-sq-ft clubhouse with amenities such as sports co..

Infrastructure Urban

07 Jul 2026

SCG Drives ASEAN Industrial Transformation Strategy

SCG is strengthening its focus on ASEAN as a key growth region by advancing industrial transformation, enhancing competitiveness and building resilient regional value chains. Thammasak Sethaudom, President and Chief Executive Officer, SCG, highlighted the need for industries to continuously develop capabilities, strengthen resilience and deepen regional cooperation to achieve sustainable long-term growth.SCG views ASEAN as an important growth engine alongside China, supported by favourable demographics, trade connectivity and investment flows. With ASEAN’s GDP projected to grow by around 4.7..