• Recently, the Ministry of Defence has released the Delegation of Financial Powers to Defence Services (DFPDS), 2021 rules.
  • The primary focus of the enhanced delegation of financial powers is to overcome procedural delays, bring about greater decentralisation and operational efficiency.
  • The DFPDS 2021 rules is another big step in defence reforms to strengthen security infrastructure.

Important points:

  • Financial Powers Devolved to Field Formations:
  • Enhanced the delegation of revenue procurement powers for the Army, Navy and Air Force.
  • 10% increase in Delegated Financial Powers of Vice Chiefs of Services.
  • Financial powers have also been delegated to new officers among the services, depending on requirements.
  • Under the new rules, critical equipment can be hired for short periods as compared to purchases or a long-term lease, which are not only considerably expensive but also take a long time.
  • Enhanced delegation of financial powers is to empower Field Commanders and below to procure equipment/war-like stores in a speedy manner for urgent operational necessities and meeting essential sustenance requirements.
  • Up to three times increase in funding related to Indigenisation/R&D to achieve ‘Atmanirbhar Bharat’.

Recent Reforms in Defence Sector:

  1. Creation of Chief of Defence Staff
  2. Establishment of Department of Military Affairs
  3. Defence Acquisition Procedure 2020
  4. Indigenisation of Defense Technology: LCA Tejas, Project 75, etc.


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