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NEW DELHI: Defence Minister Rajnath Singh on Thursday released the Delegation of Financial Powers to Defence Services (DFPDS-2026), significantly enhancing financial powers for revenue-related procurement with an annual value exceeding ₹1.25 lakh crore.
Announcing the development, Singh said the new framework marks a major reform aimed at empowering field commanders, accelerating decision-making and strengthening the operational preparedness of the Armed Forces.
“I congratulate the Ministry of Defence and the Armed Forces on getting enhanced financial powers for revenue-related procurement having an annual value of more than ₹1.25 lakh crore under the new delegation of financial powers (DFPDS-2026),” the Defence Minister said in a post on X.
Highlighting the strategic significance of the reforms, Singh stated that the revised framework would enable commanders in the field to take quicker procurement decisions, thereby improving operational readiness and efficiency. He added that the policy is designed to promote research and development within the defence sector while reducing dependence on foreign Original Equipment Manufacturers (OEMs).
The Defence Minister emphasized that the initiative would provide a major boost to the government’s Aatmanirbhar Bharat vision by encouraging greater participation of private industry, including micro, small and medium enterprises (MSMEs) and startups, in defence manufacturing and innovation.
According to the Ministry of Defence, financial powers delegated for indigenisation and research and development within the military ecosystem have been doubled. The move is expected to reduce reliance on foreign suppliers and strengthen domestic defence capabilities.
The revised delegation will facilitate procurement worth more than ₹1.25 lakh crore through the revenue route, in line with current budgetary allocations. In addition, special financial powers granted to Army, Navy and Air Force commanders have been substantially enhanced, including a 100 per cent increase in the overall ceiling available for urgent operational requirements.
To further streamline procurement processes, the new framework introduces provisions for joint-service procurement through a lead service, allowing higher financial delegations than under normal procurement procedures. Several new Competent Financial Authorities have also been created to decentralise the procurement of goods and services.
The Ministry noted that financial powers were last revised in 2021. The latest revision was necessitated by the expansion of force levels, increasing operational expenditure and higher budgetary allocations. Officials said the new delegation, together with the revised Defence Procurement Manual notified in October 2025, is expected to accelerate procurement processes and ensure timely availability of resources required by the Armed Forces.
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, Secretary (Defence Production) Sanjeev Kumar, Secretary (Ex-Servicemen Welfare) Sukriti Likhi, Secretary (Defence Finance) Vishvajit Sahay, Vice Chief of the Air Staff Air Marshal Nagesh Kapoor, Controller General of Defence Accounts Anugraha Narayana Das and other senior officials.(Agencies)
