Delegation of financial powers to defence-2021

by mehekkaoberoi


  • The first Defence Procurement Procedure (DPP) was issued in 2002, and it has been updated on a regular basis since then to help the local defence sector grow and attain greater self-reliance.
  • The Defence Acquisition Procedure (DAP) 2020, which was implemented in September 2020, governs the acquisition of capital assets by the armed forces.
  • DAP 2020 included a chapter on leasing equipment for a limited time, in addition to buying equipment from Indian or international players.
  • Under the new powers, the forces will be able to fill immediate vacancies by hiring for shorter periods of time.


  • he greater delegation of financial capabilities is primarily intended to allow Field Commanders and below to quickly acquire equipment/war-like goods for urgent operational needs and to meet vital subsistence requirements.
  • The increased delegation of financial powers would result in faster decision-making at all levels, allowing for greater planning and operational readiness of the Services in a shorter time frame while maximising resource use.
  • It will not only eliminate procedural bottlenecks, but it will also improve operational efficiency. It will increase the efficiency with which the Defence Services achieve operational readiness

Сurrent  Sсenаriо:-

  • The Delegation of Financial Powers to Defence Services (DFPDS) guidelines for 2021 have been announced by the Ministry of Defence.
  • The fundamental goal of increased financial delegation is to reduce administrative delays, increase decentralisation, and improve operational efficiency.
  • The DFPDS 2021 guidelines are a significant step forward in defence reforms aimed at bolstering security infrastructure.

Key Highlights of DFPDS 2021

  • It is providing enhanced delegation of Revenue Procurement powers to the Armed Forces (the Army, Navy and Air Force).
  • Guidelines: The DFPDS 2021 consists of guidelines related to the following Schedules of Financial Powers:
  • Army Schedules of Powers-2021 (ASP-2021)
  • Navy Schedules of Powers-2021 (NSP-2021)
  • Air Force Schedules of Powers-2021 (AFSP- 2021)
  • IDS Schedules of Powers-2021 (ISP-2021)
  • Focus Areas:
  • Financial powers devolved to field formations 
  • Operational preparedness 
  • Promoting ease of doing business and
  • Jointness among Services
  • Financial powers:
  • 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.
  • 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.
  • Emergency Powers:
  •  Enabling provision of Emergency Financial Powers to Field formations below Command level for Defence Services incorporated in Emergency Powers Schedule for ops immediate military necessities.
  • General Enhancement
  • A general enhancement of up to two times has been approved for the Competent Financial Authorities (CFAs). 
  • Delegation of Non Procurement Powers: 
  • Substantial delegation has also been approved for non procurement powers.
  • Indigenisation:
  •  Up to three times increase in Schedules related to Indigenisation/R&D to achieve ‘Atma Nirbhar Bharat’
  • A new schedule on hiring of aircraft and associated equipment has been introduced for the Indian Air Force which includes hiring of Air to Air re-fuellers. 
  • 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.
  • Empowered Committee: 
  • Clarifications or interpretation of provisions will be addressed by an Empowered Committee headed by AS&FA, Ministry of Defence with representatives of Department of Defence (DoD)/Department of Military Affairs (DMA).
  • Monitoring:
  •  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).


  • Will ensure more autonomy for the Karbi Anglong Autonomous Council, safeguarding of Karbi people’s identity, language, culture, and other aspects of their culture, and concentrated development of the Council region without jeopardising Assam’s geographical and administrative integrity.
  • Armed organisations will abandon violence and join the democratic process, while the administration would make it easier for their cadres to be rehabilitated.
  • The groups also stated that reserving 10 seats on KAAC for residents from any community was pointless, and that there was no use in reserving seats in sixth schedule managed places like KAAC.

Curated by-Meghna.Manoj

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