New rules to reform financial powers of armed forces

What is the news?

In order to address operational needs of the armed forces, Defence Minister has released order on Delegation of Financial Powers to Defence Services (DFPDS), 2021. The last DFPDS was released in 2016.

Under this order, new rules have been released to enhance the delegation of revenue procurement powers for the Army, Navy and Air Force. Along with this, financial powers have also been delegated to new officers among the services, depending on requirements.

What do the new rules say?

Under the new rules, critical equipment, like air-to-air refuellers for the Air Force, can be hired for short periods as compared to buying them or a long-term lease, which is not only considerably expensive, but also takes a long time.

Along with this, new rules also tells about delegating the financial powers for greater decentralisation and operational efficiency.

How armed forces acquire capital assets?

They buy assets as per Defence Acquisition Procedure (DAP) 2020. Under this, they buy equipment from Indian or international players and also lease equipment for a limited time.

What is the primary objective behind delegation of financial powers?

Primary focus of the 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

Emergency Financial Powers have been given to field formation below the Command levels as well, which were available at the Vice Chief or Commander level officers till now.

Source: This post is based on the article “New rules to reform financial powers of armed forces” published in The Indian Express on 10th September 2021.