Defence Minister Rajnath Singh releases DFPDS-2026, giving Armed Forces over Rs 1.25 Lakh crore buying power

In a post on X, the Defence Minister wrote, "I congratulate MoD and the Armed Forces on getting enhanced Financial Powers for Revenue related Procurement having annual value of more than Rs 1.25 Lakh crore under the new delegation of financial powers (DFPDS-2026)."

Highlighting the strategic impact of the reforms, Defence Minister Rajnath Singh stated that the new framework will empower field commanders to make faster decisions, boost operational readiness, and minimize dependence on foreign equipment manufacturers by promoting domestic research.

"This is a major initiative that will further empower the field Commanders, leading to expeditious decision making, ultimately boosting the Operational Preparedness. The new document is aimed to promote research and development in the Defence Sector and will minimise the dependence on foreign OEMs," Defence Minister said.

Further emphasising the policy's economic benefits, the Defence Minister noted that the framework will drive domestic self-reliance by engaging private startups and MSMEs, while a doubling of financial powers for works projects will guarantee much faster infrastructure development.

"This will go a long way in supporting indigenization in the defence sector, with participation of private players, including MSMEs and Startups. The financial power given for execution of works projects has been doubled to facilitate faster execution and to ensure its timely completion," he added.

As per the release, "The Financial Powers delegated for indigenisation and Research & Development within the military ecosystem have been doubled to boost Aatmanirbharta in defence by minimising the dependency on Foreign Original Equipment Manufacturers. The revised delegation of financial powers will facilitate procurement of more than Rs 1.25 lakh crore through the revenue route, as per current year budgetary allocations."

Special financial powers delegated to Army/Air Force/Naval commanders have been increased significantly along with a 100% increase in the total ceiling provided to meet urgent operational requirements.

In addition to the enhancement in financial powers, new provisions have been included to promote Joint Service procurement by the Lead Service with higher delegation than the normal procurement. Many new Competent Financial Authorities have been introduced to decentralise the procurement of Goods and Services.

"Financial Powers were last notified in 2021. The revision was necessitated due to the expansion in force level and to cater to the increased expenditure on operations and sustenance vis-a-vis the increase in budgetary allocation. This revised delegation in financial powers, along with the revised Defence Procurement Manual notified in October 2025, will give a fillip to defence procurement with expeditious decision making. This will lead to timely availability of resources as per the needs of the Defence Forces," the release said.

Chief of Defence Staff General NS Raja Subramani, Chief of the Army Staff General Upendra Dwivedi, Chief of the Naval Staff Admiral Krishna Swaminathan, Defence Secretary Rajesh Kumar Singh, Secretary (Defence Production) Sanjeev Kumar, Secretary (Ex-servicemen Welfare) Smt Sukriti Likhi, Secretary (Defence Finance) Vishvajit Sahay, Vice Chief of the Air Staff Air Marshal Air Marshal Nagesh Kapoor, Controller General of Defence Accounts Anugraha Narayana Das and other senior officials were present on the occasion. (ANI)