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Armed Forces given financial powers for quicker decision making

Defence Minister Rajnath Singh on Tuesday released an order on the Delegation of Financial Powers to Defence Services 2021, providing enhanced revenue procurement powers to the armed forces. 

Armed Forces given financial powers for quicker decision making VPN
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New Delhi, First Published Sep 7, 2021, 4:47 PM IST
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Defence Minister Rajnath Singh on Tuesday released an order on the Delegation of Financial Powers to Defence Services 2021, providing enhanced revenue procurement powers to the armed forces. 

Under revenue procurement, the armed forces can acquire equipment and services.

Besides empowering field formations, the DFPDS 2021 enhance jointness among the services, enables them to focus on operational preparedness and promote ease of doing business.

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The decision was taken to cut short the time in decision-making at all levels. This ensures that the armed forces can undertake rapid planning and operational preparedness and utilise resources in an optimum way.

The financial powers were last enhanced in 2016.

The latest decision is in line with the defence-related reforms being undertaken by the government. 

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Stressing upon the need to revise the policies to cater to the needs of the Armed Forces, Rajnath Singh said that the revised DFPDS will not only overcome procedural delays but also bring about operational efficiency and greater decentralisation.

Reiterating the 'Aatmanirbhar' resolve, Rajnath Singh urged all stakeholders to cooperate in realising the government's vision.

The financial enhancements offered

Competent Financial Authorities (CFAs) have approved the enhancements by up to two times. 

The enhancement at field formations is in the range of up to 5-10 times on account of operational requirements. 

There is a 10 per cent increase in the financial powers of vice chiefs of the Services, subject to an overall ceiling of Rs 500 crore. 

Financial powers of Chief of Integrated Defence Staff to the Chairman, Chiefs Of Staff Committee as CFA has been enhanced substantially and aligned with that of the Vice Chiefs of the Services.

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A new schedule on the hiring of aircraft and associated equipment has been brought about for the Indian Air Force. This includes the hiring of air-to-air refuellers. 

For the Indian Navy, powers for replenishment of Disaster Management Bricks have been delegated to the Command Level for immediate response to Natural Disasters/HADR Operations.

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