Government Gives a Go Ahead for Enhanced Delegation of Financial Powers under Defence Capital Procurement

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New Delhi: The Union Cabinet chaired by Prime Minister Narendra Modi on February 17 approved enhanced delegation of Financial Powers under Capital Procurement to levels below Vice-Chief of Armed Forces. As per the approval, under Other Capital Procurement Procedure (OCPP) of Defence Acquisition Procedure-2020, financial powers up to Rs 100 crore has been delegated to General Officer Commanding-in-Chief (GOC-in-C), Flag Officer Commanding-in-Chief (FOC-in-C), Air Officer Commanding-in-Chief (AOC-in-C) at Services Command and Regional Commanders, Indian Coast Guard (ICG) and powers up to Rs 200 crore has been delegated to Deputy Chief of Army Staff (CD & S)/ MGS (Master General Sustenance), COM (Chief of Material), AOM (Air Officer Maintenance), DCIDS (Deputy Chief Integrated Defence Staff) and ADG ICG (Additional Director General Indian Coast Guard).

This delegation of powers within Service Headquarters and up to Command Level for items of Capital nature such as overhauls, refits, upgrades will enhance the utility of existing assets and will facilitate faster processing and implementation of projects for modernisation of Armed Forces to meet the security challenges of the nation.

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 & Development of equipment, systems, major platforms or upgrades thereof.

Chief of Integrated Defence Staff to the Chairman Chiefs of Staff Committee (COSC), Vice Chief of Army Staff (VCOAS), Vice Chief of Naval Staff (VCNS), Deputy Chief of Air Staff (DCAS), and Director General Coast Guard (DG(CG)) 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 Government’s vision of ‘Atmanirbhar Bharat’ and ‘Make in India’ for a robust defence industrial ecosystem.

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