India Enhances Defence Financial Powers; Navy to Induct 5 Warships
The Indian government has approved increased financial powers for the armed forces, enabling procurement exceeding Rs 1.25 lakh crore. This initiative aims to boost indigenous manufacturing and operational readiness in alignment with the Aatmanirbhar Bharat initiative.
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On Thursday, Defence Minister Rajnath Singh approved a significant increase in financial powers for the armed forces, facilitating procurement exceeding Rs 1.25 lakh crore. This revised Delegation of Financial Powers allows for financial limits to be increased by up to 100%, enhancing autonomy for field commanders and expediting contract conclusions.
Special financial powers for the Army, Navy, and Air Force for urgent operational requirements have also been doubled. New provisions encourage joint procurement through a lead service model, and new competent financial authorities have been established for decentralizing procurement.
The last revision occurred in 2021, and this update responds to rising operational costs and expanded force levels. Additionally, the Indian Navy plans to induct five new warships, built by state-run shipyards at a cost of approximately Rs 15,000 crore. This induction is projected to strengthen domestic defence capabilities and enhance operational readiness.
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