CCS Approves 3-Fold Hike in Armed Forces Financial Powers

Discussion in 'Defence & Strategic Issues' started by sasi, Jan 12, 2013.

  1. sasi

    sasi Senior Member Senior Member

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    CCS Approves 3-Fold Hike in Armed Forces Financial Powers
    India has hiked the financial powers of its army, navy and air force headquarters three-fold to facilitate speedy purchases of essential defence equipment,weapons and systems.
    The revised financial powers, under which the three services headquarterscan procure up to $30 millionon their own, got the nod of the highest decision-making body, the Cabinet Committee on Security (CCS). Existing financial powers of the services headquarters is to purchase up to $10 million.
    The Defence Ministry had already given in-principle approval to the increased financial powers in May 2012when Defence Minister AK Antony had chaired a meeting of the three services chiefs along with the Defence Secretary.
    The May decision had come in the wake of criticism mounting that India's defenceforces' preparedness to wage a war was very poor due to the approaching obsolescence of its weaponsand equipment.
    A letter from then Indian Army chief General VK Singh earlier that year to Prime Minister Manmohan Singh on poor capabilities of the forces got leaked to the media, resulting in criticism inparliament too and Antony replying to parliamentarians' queries.
    The government powers delegation rules stipulate that the Defence Minister canapprove purchases at his level worth over $100 millionup to $200 million. Any contract over $200 million will have to be approved by the CCS headed by the primeminister, with finance minister, external affairs minister and home minister, apart from the defence minister, as members.
    Business estimates suggeststhat India is likely to buy equipment worth $100 billion over the next decade till 2022. However, the Indian defence purchases have faced a setback due to poor economic performance of the country, resulting in the defence capital budget being pruned by over $2 billion in December 2013. India's official financial year is from April to March.
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  3. nrj

    nrj Stars and Ambassadors Stars and Ambassadors

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    Good news!!

    Now forces even don't have to wait for MoD babus!

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  4. DivineHeretic

    DivineHeretic Senior Member Senior Member

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    I think this is as open admission of paralysis of the govt. As one will ever get. It clearly declares that the govt. is too paralysed to meet the urgent requirements of the Indian military, and hence they are better off buying on their own. This also is a slap in the face of the disgraceful babus who hold up national security projects for petty bureacracy or worse to earn bribes.
     
  5. nrj

    nrj Stars and Ambassadors Stars and Ambassadors

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    With these powers armed forces can directly procure much needed supplies.

    Couple of years back they gave financial powers to MoD so that Def Min don't have to wait for Finance Ministry's approval upto purchases till 500crores. Then last year this 500crore limit got increased to another fold. And now Armed Forces given executive financial powers for purchases.

    It makes sense because in distant future budgeting practices & overall economic planning will go through transformation.

    Having ability to make purchases as & when needed is better than MoD returning budgeted money back to Fin Min every year like what happens now.

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  6. arya

    arya Senior Member Senior Member

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    good news let see how fast our force use
     

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