Defence Minister Rajnath Singh on Thursday, 4 June, released the revised Delegation of Financial Powers for the Defence Services, increasing the financial ceiling for field commanders to strengthen operational efficiency and speed up procurement.
The revised financial powers cover the Defence Services, including medical and works projects.
In a statement, the Ministry of Defence said the enhancement has been made up to 100%, and more than double in some cases.
The move is aimed at faster conclusion of contracts and quicker execution of projects by giving greater decision-making authority to commanders and other competent financial authorities.
The revised delegation will support procurement of more than ₹1.25 lakh crore through the revenue route, based on current year budgetary allocations.
Financial powers for indigenisation and research and development within the military ecosystem have also been doubled.
The ministry said this is aimed at supporting Aatmanirbharta in defence and reducing dependence on foreign original equipment manufacturers.
Special financial powers delegated to Army, Air Force and Naval commanders have been increased significantly, with a 100% rise in the total ceiling provided to meet urgent operational requirements.
The ministry has also introduced new provisions to promote joint-service procurement by the Lead Service.
These provisions carry higher delegation than normal procurement and are aimed at improving coordination among the services.
Several new competent financial authorities have also been introduced to decentralise the procurement of goods and services.
The last notification of financial powers was issued in 2021.
The latest revision was required due to expansion in force levels and increased expenditure on operations and sustenance, along with higher budgetary allocation.
The ministry said the revised financial powers, along with the Defence Procurement Manual notified in October 2025, will support faster decision-making in defence procurement and ensure timely availability of resources for the Armed Forces.
Chief of Defence Staff General NS Raja Subramani, Chief of the Army Staff General Upendra Dwivedi, Chief of the Naval Staff Admiral Krishna Swaminathan, Defence Secretary Rajesh Kumar Singh and other senior officials were present during the release.
