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Increased power of field commanders in defence, ministry doubled financial power

June 5, 2026 by Uma Shankar

To further strengthen the operational capability of the Indian Army, the Defense Ministry has made a major change in the financial powers of field commanders. The Ministry has doubled or more increased the financial powers at various levels, which will enable faster procurement of equipment and services at the time of need. The government believes that this step will improve the preparedness of the army, speed up the procurement process and also promote indigenous defense production.

The Defense Ministry has increased the financial powers of field commanders by 100 percent. In some cases this increase has been more than doubled. ET quoted a senior officer as saying that the increased financial powers will strengthen the decision-making capacity at the field level and improve the operational preparedness of the army. Through these changes, the procurement process of about Rs 1.25 lakh crore is also expected to gain momentum in this financial year. It also includes projects related to Research and Development (R&D) and reducing dependence on imports.

Army commanders and service chiefs get more powers

Under the new rules, the purchase limit for army commanders and their equivalent officers has been increased from Rs 30 crore to Rs 100 crore. At the same time, for Service Chief level officers, this limit has been increased from Rs 75 crore to Rs 125 crore. Defense Minister Rajnath Singh approved these changes on Thursday. This major amendment in financial powers has been made after about five years. The ministry believes that this step was necessary in view of the expansion of the army and increasing operational needs.

Indigenization and joint purchasing will get a boost

The Defense Ministry has also increased financial powers to promote indigenous defense production and research and development. Its objective is to reduce dependence on imports in the defense sector and promote technologies developed in the country. Joint procurement between the three armies has also been encouraged in the new provisions. For this, Lead Service has been given more financial powers than normal procurement. This will lead to better utilization of resources and make the procurement process more effective.

This decision is being considered a part of the comprehensive defense reforms initiated by the Defense Minister. The government aims to make the procurement process less complex and enable the forces to adopt new technologies faster. It is believed that with these changes, procurement of drones, anti-drone systems and other modern defense equipment will be done more quickly in future.

Also read- Rising oil prices can spoil the balance of the economy, RBI gives big warning!

About Uma Shankar

Uma Shankar writes about finance, business, and investment topics. He simplifies complex subjects like stock market, banking, tax, and cryptocurrency to help readers make informed financial decisions. Data-driven reporting is his strength.

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