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

03 Jun 2026

Jyoti Structures Launches Heat Safety Drive Across Sites

Jyoti Structures (JSL) has strengthened heat safety measures across its project sites and manufacturing facilities as temperatures rise across India. The company has implemented a Summer Safety Plan covering all transmission line projects to address risks related to heat stress, dehydration and worker fatigue.The initiative includes rescheduling work away from peak afternoon temperatures, provision of drinking water, ORS and lemon-salt solutions, and installation of rest shelters near work areas. Daily toolbox talks, worker health monitoring, first-aid preparedness, emergency transport arrange..

Real Estate

03 Jun 2026

MHADA Declares 82 Buildings Most Dangerous in Central and South Mumbai

The Maharashtra Housing and Area Development Authority (MHADA) has declared 82 buildings as most dangerous across Central and South Mumbai and has appealed to residents to vacate immediately. The list, prepared after structural assessments by the authority, identifies buildings judged to pose imminent risk to occupants and to passersby. Local civic bodies have been asked to coordinate evacuations and to make arrangements for temporary shelter and rehabilitation for displaced households. Officials said the authority prioritised buildings with visible structural distress, severe cracking, tiltin..

Infrastructure Transport

03 Jun 2026

Damage Reported At Halwara Airport Terminal After First Rains

Severe damage was reported at the terminal of Halwara Airport during the first major rain spell of the season, prompting immediate concern among aviation and local authorities. Images from the site showed water ingress and visible deterioration of the terminal interior, affecting passenger areas and ancillary services. The airport authority suspended certain operations temporarily to assess structural safety and ensure passenger wellbeing. Preliminary inspections have prioritised electrical systems and roof seals to prevent further water ingress. State aviation officials ordered a formal inqui..