Overview
- Defence Minister Rajnath Singh released the revised Delegation of Financial Powers for the Defence Services on Thursday, June 4, 2026, formally increasing spending ceilings for commanders to cut decision times.
- The ministry said delegations were raised by up to 100 percent and in some cases more than doubled, with multiple reports citing service‑chief project limits moving from Rs 75 crore to Rs 150 crore and field‑commander limits from Rs 30 crore to Rs 100 crore.
- Financial powers for indigenisation and defence research and development have been doubled to encourage domestic suppliers, including MSMEs and start‑ups, and to reduce reliance on foreign original equipment manufacturers.
- New competent financial authorities and provisions for lead‑service joint procurement were introduced to decentralise buying and allow a single service to steer multi‑service acquisitions with higher delegated limits.
- The MoD says the change will facilitate more than Rs 1.25 lakh crore of revenue‑route procurements under current budgets, but exact per‑commander allocations and effects on ongoing contracts will become clear as services apply the new delegations.