Delegation of Financial Powers to Defence Services, 2021 Rules

• 09 Sep 2021

Why in News

Recently, the Ministry of Defence has released the Delegation of Financial Powers to Defence Services (DFPDS), 2021 rules.

• The primary focus of the enhanced delegation of financial powers is to overcome procedural delays, bring about greater decentralisation and operational efficiency.
• The DFPDS 2021 rules is another big step in defence reforms to strengthen security infrastructure.

Key Points

• Key Highlights of DFPDS 2021:
  
  • Financial Powers Devolved to Field Formations:
    
    • Enhanced the delegation of revenue procurement powers for the Army, Navy and Air Force.
    • 10% increase in Delegated Financial Powers of Vice Chiefs of Services.
    • Financial powers have also been delegated to new officers among the services, depending on requirements.
  • Focus on Operational Preparedness:
    
    • Under the new rules, critical equipment can be hired for short periods as compared to purchases or a long-term lease, which are not only considerably expensive but also take a long time.
    • 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.
  • Promoting Ease of Doing Business:
    
    • Up to three times increase in funding related to Indigenisation/R&D to achieve ‘Atmanirbhar Bharat’.
• Recent Reforms in Defence Sector:
  
  • Creation of Chief of Defence Staff
  • Establishment of Department of Military Affairs
  • Defence Acquisition Procedure 2020
  • Recent Critical Defence Acquisitions: Rafale fighter aircraft, S-400 missile defense system, etc.
  • Participation of Women in Armed Forces
  • Indigenisation of Defense Technology: LCA Tejas, Project 75, etc.

Source: IE