India gives more financial powers to military commanders


Defence News: A meeting of Union Cabinet chaired by Prime Minister Narendra Modi Wednesday approved enhanced delegation of Financial Powers under Capital Procurement to levels below Vice-Chief of Armed Forces.

Defence Ministry said that as per the approval, under Other Capital Procurement Procedure of Defence Acquisition Procedure-2020, financial powers up to Rs 100 crore ($13.77 million) has been delegated to General Officer Commanding-in-Chief of Indian Army, Flag Officer Commanding-in-Chief of Indian Navy, Air Officer Commanding-in-Chief at Services Command of Indian Air Force and Regional Commanders, of Indian Coast Guard.

Powers up to Rs 200 crore ($27.54 million) have been delegated to Deputy Chief of Army Staff, Chief of Material, Air Officer Maintenance, Deputy Chief Integrated Defence Staff and Additional Director General Indian Coast Guard.

The increased financial powers of senior military commanders below the level of Vice Chiefs for Indian military will speed up the procurement of critical weapon system in times of crisis as India’s defence procurement is notoriously slow due to bureaucratic rigidity.

India Army Asmi Machine Pistol

India’s indigenous Machine Pistol Asmi. (Military commanders now have more financial powers to speed up the defence procurement).

These enhanced powers are applicable on the procurements made under the category of Other Capital Procurement Procedure (OCPP) in the Defence Acquisition Procedure-2020 (DAP 2020).

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This delegation of powers within Service Headquarters and up to Command Level for items of Capital nature such as overhauls, refits, and upgrades will enhance the utility of existing assets and will facilitate faster processing and implementation of projects for modernization of Armed Forces to meet the security challenges of the nation.

Atma Nirbhar Bharat (Self-reliant India)

Cabinet has also approved enhanced financial powers in the Make-I category under which Government funding up to 70 per cent of the prototype development cost is available for Design and Development of equipment, systems, major platforms or upgrades. 

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Financial powers have also been enhanced for other competent financial authorities under ‘Make-I’ in line with Prime Minister Narendra Modi’s vision of ‘Atma Nirbhar Bharat’ (a self-reliant India) and ‘Make in India’ for a robust defence industrial ecosystem.

Chief of Integrated Defence Staff to the Chairman Chiefs of Staff Committee (CISC), Vice Chief of Army Staff (VCOAS), Vice Chief of Naval Staff (VCNS), Deputy Chief of Air Staff (DCAS), and Director General Coast Guard (DG(CG)) have now been given powers to sanction Government support up to Rs 50 crore ($6.88 million) towards cost of prototype development.

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