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In a first, Centre approves financial powers for top military officers

The enhanced powers come in the backdrop of challenges along the borders with China and Pakistan.

Published on: Feb 17, 2021 8:35 PM IST
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The Cabinet on Wednesday approved enhanced financial powers of up to 200 crore for senior military officers to make capital procurement, a government statement said. The deputy chief of army staff (capability development and sustenance) – a post created last December – is among the officers who have been granted enhanced financial powers.

The Cabinet approved financial powers to the tune of  ₹200 crore for one category of officers and  ₹100 crore for the second category that consists of military officers of the rank of commanders-in-chief. (Photo: @adgpi)
The Cabinet approved financial powers to the tune of ₹200 crore for one category of officers and ₹100 crore for the second category that consists of military officers of the rank of commanders-in-chief. (Photo: @adgpi)

This is the first time regular financial powers (as opposed to special financial powers) have devolved below the vice chief level for specified items of capital nature to meet emerging security challenges, people familiar with the matter said. The enhanced powers come in the backdrop of challenges along the borders with China and Pakistan.

The Cabinet approved financial powers to the tune of 200 crore for one category of officers and 100 crore for the second category that consists of military officers of the rank of commanders-in-chief (senior three-star officers heading different commands).

Among the officers who have been given authority to spend 200 crore are the navy’s chief of material, the air force’s chief of maintenance, the deputy chief of Integrated Defence Staff and the coast guard’s additional director general, the statement said.

“This delegation of powers within service headquarters and up to command level for items of capital nature such as overhauls, refits and upgrades will enhance the utility of existing assets and will facilitate faster processing and implementation of projects for modernisation of the armed forces to meet security challenges,” the statement said.

Delegation of financial powers is a welcome step as it will provide impetus to capability development, shorten procurement cycles and enhance operational readiness, said Lieutenant General Vinod Bhatia (retd), a former director general of military operations.

The Cabinet has also approved enhanced financial powers in the ‘Make-I category’ under which government funding of up to 70% of the prototype development cost is available for design and development of equipment, systems and platform upgrades.

“The Chief of Integrated Defence Staff to the Chairman, Chiefs of Staff Committee or CISC, vice chiefs of the army, navy and air force, and Director General, Coast Guard have now been given powers to sanction government support up to 50 crore towards cost of prototype development,” the statement said.

Financial powers have also been increased for other competent authorities under ‘Make-I’, in line with the government’s plan to boost the self-reliant India campaign to build a robust defence industrial ecosystem, it added.

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