Centre gives financial powers to clear projects up to Rs 200 crore to deputy chiefs, command heads of armed forces

The Union Cabinet on Wednesday approved financial powers to clear projects worth up to Rs 200 crore to the deputy chiefs and command heads of the armed forces for capital procurement projects, officials said. The financial powers have been approved for projects under the 'Other Capital Procurement Procedure' category, they said.

Financial powers to clear projects worth up to Rs 200 crore have been delegated to Deputy Chief of Army Staff, Air Officer Maintenance and Deputy Chief of Integrated Defence Staff as well as to additional director general of Indian Coast Guard.

An official statement read, "The Union Cabinet today 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 etc. will enhance the utility of existing assets and will facilitate faster processing and implementation of projects for modernization of Armed Forces to meet the security challenges of the nation," added the statement.

As per the approval, financial powers for capital procurement projects worth up to Rs 100 crore have 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 commands and regional commands, officials said. 

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 (CISC), 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.