Defence Minister Rajnath Singh gives more financial powers to Armed Forces

The defence minister terms it the Modi-led government’s another big step in defence reforms to strengthen the security infrastructure of the country

New Delhi: Defence Minister Rajnath Singh on Tuesday released an order that gives enhanced revenue procurement powers to the Armed Forces. Titled 'Delegation of Financial Powers to Defence Services (DFPDS) 2021, it aims to empower field formations; focus on operational preparedness; promote ease of doing business and enhance jointness among the Services.

The primary focus of the enhanced delegation of financial powers is to empower Field Commanders and below to procure equipment/war-like stores in a speedy manner for urgent operational necessities and also to bring about greater decentralisation and operational efficiency. The last such enhancement at all levels for the Defence Services was done in 2016.

Speaking on the occasion, the minister described DFPDS 2021 as another big step in the series of defence reforms being undertaken by the Narendra Modi-led government to strengthen the security infrastructure of the country. The minister also sought the support of the stakeholders to cooperate in realising the 'Athmanirbhar Bharat' vision of the government in this regard.

The DFPDS 2021 has four schedules of Financial Powers namely Army Schedules of Powers-2021 (ASP-2021), Navy Schedules of Powers-2021 (NSP-2021), Air Force Schedules of Powers-2021 (AFSP- 2021), and IDS Schedules of Powers-2021 (ISP-2021)

Based on the schedules, delegated financial powers of Vice-Chiefs of the Services have been increased by 10 per cent, subject to an overall ceiling of Rs 500 crore.

Substantial enhancement has also been approved in the Schedules related to Indigenisation/Research & Development up to three times of the existing powers, in line with ‘Atmanirbhar Bharat’ envisioned by Prime Minister Narendra Modi.

A new schedule on the hiring of aircraft and associated equipment has been introduced for the Indian Air Force, which includes procuring Air-to-Air refuellers. For the Indian Navy, powers for replenishment of Disaster Management Bricks have been delegated to Command Level for immediate response to Natural Disasters/HADR Operations.

Clarifications or interpretation of provisions will be addressed by an Empowered Committee headed by AS&FA, Ministry of Defence with representatives of the Department of Defence (DoD)/Department of Military Affairs (DMA).

A system of oversight, disclosure and internal audit mechanism will be put in place by the administrative wing of Department of Defence /Military Affairs in consultation with MoD (Finance).

Chief of Defence Staff General Bipin Rawat, Chief of Naval Staff Admiral Karambir Singh, Defence Secretary Dr Ajay Kumar and other senior civil & military officials of the Ministry of Defence were present on the occasion.