Defence Minister Rajnath Singh approves delegation of financial powers to Armed Forces

Union Defence Minister Rajnath Singh on Tuesday approved the 'Delegation of Financial Powers to Defence Services' (DFPDS) 2021. The Defence Ministry said that this will provide enhanced delegation of revenue procurement powers to the Armed Forces. Articulating on the occasion, the Defence Ministry termed this initiative another big step in the series of defence reforms undertaken by the PM Modi-led government aimed at strengthening the security infrastructures of the country.

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 at the occasion.

What were the ideologies behind passing the order?

The order by Defence Minister Rajnath Singh on DFPDS 2021 read that the enhanced delegation of financial powers to be offered to functionaries in Service Headquarters. He added that these lower formations would result in quicker decision-making at all levels leading to better planning and operational preparedness of the services in a quicker time frame and optimum utilisation of resources.

The order maintained that the principal focus of the enhanced delegation of financial powers was to empower Field Commanders and ranks below to help procure equipment/war-like stores speedily for urgent operational necessities. This also included factors like meeting essential sustenance requirements. Previously the Defence sector had only witnessed such enhancement back in 2016.

Guidelines under The DFPDS 2021 

• A general enhancement of up to two times has been approved for the Competent Financial Authorities (CFAs). In certain Schedules, this enhancement at field formations is in the range of up to 5-10 times on account of operational requirements. 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. Financial Powers of Chief of Integrated Defence Staff to the Chairman Chiefs Of Staff Committee (CISC) as CFA has been enhanced substantially and aligned with that of the Vice Chiefs of the Services.
• New CFAs have been added viz. Deputy Chief of Army Staff, Master General Sustenance, ADG (Procurement)/DG Air Operations/DG Naval Operations etc. in Service Headquarters and in the field formations on account of reorganisation/restructuring/functional requirements.
• An enabling provision of Emergency Financial Powers to the Field formations below Command level for the Defence Services has now been incorporated in the Emergency Powers Schedule which till present was available to Vice Chiefs and C-in-Cs/equivalent.
• New Schedules for Field Commanders Special Financial Powers to meet Strategic/Operational requirements, in line with the existing Army Schedule on 'Army Commanders Special Financial Powers' have been introduced for Navy and Air Force.
• Substantial enhancement has 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 Shri Narendra Modi.
• A new schedule on the hiring of aircraft and associated equipment has been introduced for the Indian Air Force which includes the hiring of 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 DoD/DMA in consultation with MoD (Finance). The substantial delegation has also been approved for non-procurement powers.

Another significant step by PM Modi-led government

Defence Minister Rajnath Singh while speaking at the occasion, claimed this to step to another big leap in the series of defence reforms that the govt. had undertaken to strengthen the security infrastructures of the nation. He stressed the need to revise the policies to cater to the needs of the Armed Forces and added, "DFPDS 2021 will not only overcome procedural delays but also bring about greater decentralisation and operational efficiency." Demanding for optimum use of resources, Singh exhorted all the stakeholders to cooperate in realising the vision of the Government.

Image Credits - Twitter (Rajnath Singh)