Defence minister Rajnath Singh on Thursday approved a two-fold increase in the amount of money field commanders can clear by themselves for defence procurements.
The move is aimed at strengthening operational efficiency and ensuring faster conclusion of contracts as well as execution of projects.
Special financial powers delegated to the commanders of the army, air force and the navy have been hiked along with a 100 per cent increase in the total ceiling provided to meet urgent operational requirements, the defence ministry said.
“The revised delegation of financial powers will facilitate procurement of more than ₹1.25 lakh crore through the revenue route, as per current year budgetary allocations. This would further strengthen the operational efficiency of field commanders and lead to faster conclusion of contracts and execution of projects,” the defence ministry said.
The move comes at a time when large-scale procurements have been undertaken by the armed forces through emergency and regular routes.
The ministry has prioritised both emergency and regular procurement routes to quickly bridge capability gaps and accelerate self-reliance in domestic manufacturing.
“Special financial powers delegated to army/air force/naval commanders have been increased significantly along with a per cent increase in the total ceiling provided to meet urgent operational requirements,” the ministry said.