New Delhi: The Ministry of Defence has enhanced the financial powers of service chiefs and field commanders to speed up procurement and execution of defence projects.
Under the revised delegation, procurement worth over Rs 1.25 lakh crore can be undertaken through the revenue route in line with current budget allocations.
Service chiefs can now approve projects or procurements up to Rs 150 crore, up from the earlier Rs 75 crore limit. Field commanders have been given powers to clear proposals up to Rs 100 crore, compared to Rs 30 crore earlier.
“This is a major initiative that will further empower the field Commanders, leading to expeditious decision making, ultimately boosting the Operational Preparedness,” Defence Minister Rajnath Singh said on social media platform X.
He said the revised Delegation of Financial Powers for the Defence Services, including medical and works projects, would support indigenisation and enable participation of private players, including MSMEs and start-ups.
“The financial power given for execution of works projects has been doubled to facilitate faster execution and to ensure its timely completion,” he said.
The ministry said new provisions have been introduced to promote joint service procurement through a lead service, along with the creation of additional competent financial authorities to decentralise procurement of goods and services.
Financial powers for indigenisation and research and development within the military ecosystem have also been doubled to reduce dependence on foreign original equipment manufacturers.
The ministry noted that the previous delegation was issued in 2021 and the revision was necessitated by expansion in force levels and increased expenditure on operations and maintenance.
It said the revised framework, along with the updated Defence Procurement Manual notified in October 2025, would expedite decision-making and ensure timely availability of resources for the armed forces.
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