Granting special financial powers like those in the Indian Army to field commanders in the Indian Air Force (IAF) and the Navy, extending emergency financial powers to lower field formations for better planning and quicker decision-making, allowing more officers to take financial calls, and increasing financial powers of sanctioning authorities by up to 10 times.
These are some of the significant provisions of the revised Delegation of Financial Powers to Defence Services (DFPDS-2021) that Defence Minister Rajnath Singh unveiled on Tuesday.
A defence ministry statement quoted Singh as saying that DFPDS-2021 will not only “overcome procedural delays, but also bring about greater decentralisation and operational efficiency”.
DFPDS, which was last notified in 2016 before the new changes, is the sole document that lays out financial powers of the armed forces for India’s defence revenue procurements. Capital procurements are governed by the Defence Acquisition Procedure (DAP), which was released in September 2020.
While capital procurements refer to the acquisition of major capital assets, weapons or weapon systems and other critical equipment that enhance long-term capabilities of the armed forces, revenue purchases, among others, are related to the procurement of critical spares and ammunition required for the maintenance of these capital assets.
The revision of DFPDS was initiated early last year. The major reform move was aimed at empowering field formations, ensuring ease of doing business, and enhancing integration among the three services with a focus on operational preparedness.
As reported by News18.com on Monday, the new DFPDS also proposes financial powers for IAF to hire aircraft, including mid-air refuellers, and related equipment for short term to meet operational emergencies.
The document also has a greater focus on intelligence gathering. It has provided for increasing the financial powers of the Army by five to 10 times for procuring intelligence-related equipment, and for security systems developed exclusively for the force.
With the Navy undertaking several Humanitarian and Disaster Relief (HADR) operations, powers for replenishment of disaster management bricks have been delegated to naval commands for immediate response to such operations. Earlier, this decision was taken only at the service headquarters’ level in New Delhi.
The new document also offers substantial enhancement in the schedules related to indigenisation, and research and development of up to three times in line with the Centre’s push on Atmanirbhar Bharat.
Major reform, faster procurement
Earlier, only field commanders of the Army had special financial powers, but these powers have now been extended to field commanders of the air force and the Navy.
This delegation of special financial powers to field commanders of the two services will aid them take calls on urgent procurements of equipment, stores and spares for immediate operational requirement, a move that is expected to save time.
As per DFPDS-2021, these powers could allow command chiefs to spend Rs 40 crore in each case.
Additionally, the new document has extended emergency financial powers to lower field formations of the Army, Navy and IAF.
Emergency powers are those which are applicable to urgent military necessities, such as a war or war-like situations for immediate procurement of equipment, stores, vehicles, manpower, among others. The field formations did not have this power earlier, even as the vice chiefs and the commander-in-chiefs of the services had full emergency powers.
The financial powers of competent financial authorities (CFA) have been increased by five to 10 times in view of emerging operational requirements, while the financial powers of vice chiefs of the services have been increased by 10 per cent, subject to an overall ceiling of Rs 500 crore.
Moreover, several senior officers of the services have now been empowered as CFAs, such as Deputy Chief of the Army, Additional Director General (procurement), Director General of Air and Naval operations in the service headquarters, and also for officers in field formations.
The Chief of Integrated Defence Staff To The Chairman Chiefs Of Staff Committee (CISC) has also been included as a CFA in the emergency schedules of the Integrated Defence Staff in the new DFPDS. Both will help in cutting down the long, tedious defence procurement process.
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