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- Recently, the Defence Minister of India released an order on Delegation of Financial Powers to Defence Services (DFPDS) 2021.
Key Highlights of DFPDS 2021
- It is providing enhanced delegation of Revenue Procurement powers to the Armed Forces (the Army, Navy and Air Force).
- Guidelines: The DFPDS 2021 consists of guidelines related to the following Schedules of Financial Powers:
- Army Schedules of Powers-2021 (ASP-2021)
- Navy Schedules of Powers-2021 (NSP-2021)
- Air Force Schedules of Powers-2021 (AFSP- 2021)
- IDS Schedules of Powers-2021 (ISP-2021)
- Focus Areas:
- Financial powers devolved to field formations
- Operational preparedness
- Promoting ease of doing business and
- Jointness among Services
- Financial powers:
- Delegated Financial Powers of Vice Chiefs of the Services have been increased by 10 per cent, subject to an overall ceiling of Rs 500 crore.
- New Schedules for Field Commanders Special Financial Powers to meet Strategic/Operational requirements, in line with the existing Army Schedule on ‘Army Commanders Special Financial Powers’ have been introduced for Navy and Air Force.
- Emergency Powers: Enabling provision of Emergency Financial Powers to Field formations below Command level for Defence Services incorporated in Emergency Powers Schedule for ops immediate military necessities.
- General Enhancement: A general enhancement of up to two times has been approved for the Competent Financial Authorities (CFAs).
- Delegation of Non Procurement Powers: Substantial delegation has also been approved for non procurement powers.
- Indigenisation: Up to three times increase in Schedules related to Indigenisation/R&D to achieve ‘Atma Nirbhar Bharat’
- A new schedule on hiring of aircraft and associated equipment has been introduced for the Indian Air Force which includes hiring of Air to Air re-fuellers.
- For the Indian Navy, powers for replenishment of Disaster Management Bricks have been delegated to Command Level for immediate response to Natural Disasters/HADR Operations.
- Empowered Committee: Clarifications or interpretation of provisions will be addressed by an Empowered Committee headed by AS&FA, Ministry of Defence with representatives of Department of Defence (DoD)/Department of Military Affairs (DMA).
- Monitoring: A system of oversight, disclosure and internal audit mechanism will be put in place by the administrative wing of DoD/DMA in consultation with MoD (Finance).
Significance
- Speedy Decisions: The enhanced delegation of Financial Powers would result in quicker decision making at all levels leading to better planning and operational preparedness of the Services in a quicker time frame and optimum utilisation of resources.
- Enhanced Efficiency: It will not only overcome procedural delays, but also bring about greater operational efficiency. It will accord greater efficiency in attaining operational preparedness of the Defence Services.
- Greater Decentralisation: DFPDS 2021 will provide enhanced impetus towards ease of doing business right up to the grassroots level and facilitate greater decentralisation through enhanced devolution of delegated financial powers.
- Plugs Operational Needs: It is an important step to help plug operational needs of the armed forces. It will accord greater efficiency in attaining operational preparedness of the Defence Services.
- Boost to Infrastructure: It is another big step in the series of defence reforms being undertaken by the Government to strengthen the security infrastructure of the country.
- Atmanirbhar Bharat: The order supports the resolve to make the security system of the country strong and ‘Atma Nirbhar’.
Conclusion
- The primary focus of the 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.
Defence Acquisition Procedure (DAP) 2020
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Source: IE
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