For the first time, financial powers in Armed Forces delegated below vice-chief level

Vijay Mohan
Tribune News Service
Chandigarh, February 17

For the first time, financial powers for capital procurement in the armed forces have been delegated to levels below that of service Vice Chiefs to meet the emerging security challenges.

The Union Cabinet on Wednesday approved enhanced delegation of financial powers in the armed forces.

Under the Other Capital Procurement Procedure (OCPP) of the Defence Acquisition Procedure—2020, financial powers up to Rs.100 crore has been delegated to General Officer Commanding-in-Chief Flag Officer Commanding-in-Chief and Air Officer Commanding-in-Chief at the services command level and regional commanders of the Indian Coast Guard.

These officers are equivalent to Vice Chief.

Powers up to Rs 200 crore have been delegated to Deputy Chief of Army Staff Master General Sustenance, Chief of Material, Air Officer Maintenance, Deputy Chief Integrated Defence Staff, Additional Director General, and Indian Coast Guard.

These officers are a rung below Vice Chief.

This delegation of powers within service headquarters and up to command level for items of capital nature such as overhauls, refits, upgrades, etc. will enhance the utility of existing assets, and will facilitate faster processing and implementation of projects for modernisation of the armed forces, according to a Defence Ministry spokesperson.

The Cabinet has also approved enhanced financial powers in the “Make-I” category under which government funding up to 70 per cent of the prototype development cost is available for design and development of equipment, systems, major platforms or upgrades thereof.

Chief of Integrated Defence Staff to the Chairman Chiefs of Staff Committee, Vice Chief of Army Staff, Vice Chief of Naval Staff, Deputy Chief of Air Staff and Director General Coast Guard have now been given powers to sanction government support up to Rs.50 crore towards cost of prototype development.

Financial powers have also been enhanced for other competent financial authorities under "Make-I" in line with the government’s vision of self-reliance and for developing a robust defence industrial ecosystem.