Enhanced financial delegation to support procurement exceeding Rs 1.25 lakh crore through revenue route
Revised Financial Powers for indigenisation and R&D doubled to boost Aatmanirbharta in defence & minimise import dependency
New provisions introduced to accelerate Joint-Service procurement by the Lead Service with enhanced powers
Raksha Mantri Shri Rajnath Singh released the revised Delegation of Financial Powers for the Defence Services, including medical and works projects, in New Delhi on June 04, 2026. The enhancement in the Financial Powers has been made up to 100%, and even more than double in some cases. This would further strengthen the operational efficiency of field commanders, and lead to faster conclusion of contracts & execution of projects.
The Financial Powers delegated for indigenisation and Research & Development within the military ecosystem have been doubled to boost Aatmanirbharta in defence by minimising the dependency on Foreign Original Equipment Manufacturers. The revised delegation of financial powers will facilitate procurement of more than Rs 1.25 lakh crore through the revenue route, as per current year budgetary allocations.
Special financial powers delegated to Army/Air Force/Naval commanders have been increased significantly along with a 100% increase in the total ceiling provided to meet urgent operational requirements. In addition to the enhancement in financial powers, new provisions have been included to promote Joint Service procurement by the Lead Service with higher delegation than the normal procurement. Many new Competent Financial Authorities have been introduced to decentralise the procurement of Goods and Services.
Financial Powers were last notified in 2021. The revision was necessitated due to the expansion in force level and to cater to the increased expenditure on operations and sustenance vis-à-vis the increase in budgetary allocation. This revised delegation in financial powers, along with the revised Defence Procurement Manual notified in October 2025, will give a fillip to defence procurement with expeditious decision making. This will lead to timely availability of resources as per the needs of the Defence 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 Shri Rajesh Kumar Singh, Secretary (Defence Production) Shri Sanjeev Kumar, Secretary (Ex-servicemen Welfare) Smt Sukriti Likhi, Secretary (Defence Finance) Shri Vishvajit Sahay, Vice Chief of the Air Staff Air Marshal Air Marshal Nagesh Kapoor, Controller General of Defence Accounts Shri Anugraha Narayana Das and other senior officials were present on the occasion.
