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Defence Ministry announces ‘Delegation of Financial Powers to Defence Services (DFPDS) 2021’

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Raksha Mantri Shri Rajnath Singh approves Delegation of Financial powers to Armed ForcesOn 7th September 2021, Defence Minister Rajnath Singh announced the ‘Delegation of Financial Powers to Defence Services (DFPDS) 2021’, providing enhanced Revenue Procurement provisions to Indian defence forces to strengthen India’s security infrastructure.

i.To formulate quicker decision making at all levels, the DFPDS 2021 has empowered Field Commanding officers with higher financial procurement powers.

ii.DFPDS 2021 will promote ease of doing business with its greater decentralized system, and also targets to overcome the procedural delays in arms procurement.

Procedural Changes in DFPDS 2021:

i.Competent Financial Authorities (CFA) were provided with twice of the usual financial assistance, in certain field formations the enhancement ranges from 5 to 10 times.

  • Vice Chiefs of the Services, got an enhancement of 10% of their usual financial power, with an overall ceiling of Rs. 500 crores.
  • Schedules related to Indigenisation/Research & Development, saw a 3-time financial enhancement compared to the current levels.

ii.Financial powers of Chief of Integrated Defence Staffs to the Chairman of Chief of Staff Committee as CFA were enhanced to that of Vice Chief of the Service.

iii.Deputy Chief of Army Staff, Master General Sustenance, ADG (Procurement)/DG Air Operations/DG Naval Operations etc. were added to the CFAs list.

iv.Field formations below Command level for the Defence Services has been incorporated in the Emergency Powers Schedule

Indian Air Force & Navy:

i.Indian Air Force received a new Schedule for Hiring of Aircraft & associated equipment, which includes hiring of Air-to-Air refuellers.

ii.Command level officers of the Indian Navy were equipped with powers for replenishment of disaster management equipment and materials for immediate response to natural disasters and humanitarian assistance and disaster relief (HADR) operations.

iii.All the special financial powers introduced to the Indian Army under “Army Commanders Special Financial Powers” were introduced to the Navy & Air force.

The DFPDS 2021 consists of guidelines on Schedules of Financial Powers for,

  • 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)

The last enhancement at all levels of defence serves were done in 2016.

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).

Recent Related News:

Union Defence Minister Rajnath Singh approved INR 498.8 Crore budgetary support to Innovations for Defence Excellence-Defence Innovation Organisation (iDEX-DIO) for the next 5 years for boosting Defence Innovation in India.

About Ministry of Defence:

Union Minister – Rajnath Singh (Lucknow, Uttar Pradesh)
Minister of State – Ajay Bhatt (Nainital-Udhamsingh Nagar, Uttarakhand)