Rajnath Singh unveils revised financial powers for faster procurement

Under the new framework, financial powers available to military authorities have been increased by up to 100 percent, with some categories receiving more than double the previous limits.

Defence Minister Rajnath Singh has approved a significant increase in financial powers for India's Armed Forces, a move aimed at speeding up procurement processes, improving operational readiness and strengthening self-reliance in defence production. The revised Delegation of Financial Powers for the Defence Services, including provisions related to medical and infrastructure projects, was released in New Delhi on Thursday.

Under the new framework, financial powers available to military authorities have been increased by up to 100 percent, with some categories receiving more than double the previous limits. The changes are expected to help field commanders respond more quickly to operational requirements and reduce delays in contract approvals and project execution.

Push for self-reliance and joint military procurement

A major focus of the revised policy is boosting indigenous defence capabilities. Financial powers related to indigenisation and research and development within the military ecosystem have been doubled to encourage greater use of domestically developed technologies and reduce reliance on foreign defence manufacturers. Officials said the revised powers could facilitate procurement worth more than ₹1.25 lakh crore through the revenue route, based on current budget allocations.

The new framework also increases special financial powers available to Army, Navy and Air Force commanders, particularly for urgent operational requirements. The overall ceiling for emergency procurement has been raised by 100 percent. Several new provisions have been introduced to encourage joint procurement among the three services. Under this approach, a lead service will be able to carry out purchases on behalf of others with higher delegated powers than standard procurement arrangements. The Ministry has also expanded the number of Competent Financial Authorities, allowing procurement decisions for goods and services to be made at more decentralised levels.

Changes reflect growing operational and budgetary needs

The last major revision of financial powers was issued in 2021. Defence officials said the latest update became necessary due to the expansion of force requirements, rising operational expenditure and increased budget allocations for the Armed Forces. The revised delegation works alongside the updated Defence Procurement Manual issued in October 2025, which was designed to streamline acquisition procedures and improve decision-making timelines.

Officials believe the combined reforms will accelerate procurement processes, ensure quicker availability of equipment and resources, and improve the overall effectiveness of defence operations. The event was attended by Chief of Defence Staff General Anil Chauhan, Chief of the Army Staff General Upendra Dwivedi, Chief of the Naval Staff Admiral Krishna Swaminathan, Defence Secretary Rajesh Kumar Singh and several senior officials from the defence establishment.