Defence Minister Rajnath Singh officially released the Delegation of Financial Powers to DRDO (DFP-2026) on June 29, 2026, describing it as a major reform to enhance efficiency, accountability, and timely execution of strategic R&D projects. According to the Ministry of Defence, the revised framework is expected to facilitate faster production and induction of systems, platforms and technologies developed through the Defence Research and Development Organisation (DRDO) into the Armed Forces. The structure aims to significantly enhance functional empowerment at various levels within the Department of Defence R&D, with the reform strengthening collaboration between DRDO, industry and academia, reinforcing the vision of Aatmanirbhar Bharat and enhancing self-reliance in defence technologies. The Ministry reports that DFP-2026 seeks to significantly enhance functional empowerment at various levels within the Department of Defence R&D by streamlining financial decision-making and project implementation.
The new framework introduces dedicated financial provisions for trial campaigns, tests, and evaluation activities, and authorises the sanctioning of pre-project R&D initiatives. As reported by Business Standard, the structure aims to bring clarity by segregating financial powers for grants-in-aid related to extramural research projects, Defence Innovation Accelerator Centres of Excellence, and Technology Development Fund projects under their respective schedules. According to former Financial Adviser (Acquisition) Amit Cowshish, these are small projects that entail R&D, which are funded by the services from the revenue budget. The revised structure also clearly demarcates financial powers for grants-in-aid across Extra-Mural Research Projects, Defence Innovation Accelerator–Centres of Excellence, and Technology Development Fund initiatives under their respective schedules. The Ministry confirms that the reforms are expected to improve the timely execution of strategic R&D programmes, accelerate the delivery of critical defence technologies and further strengthen the country's defence preparedness.
According to Cowshish, all these financial powers are subject to two things: availability of funds and compliance with the existing rules and regulations governing expenditure. He suggested the reform is unlikely to have a transformative effect on India's major strategic R&D programmes. Speaking on the occasion, Singh stated that the new framework will facilitate faster production and induction of systems, platforms, and technologies into the defence forces. The government maintains that DFP-2026 will facilitate faster production and induction of systems into the defence forces, with the Delegation of Financial Powers to Defence Services (DFPDS-2026) aims to enhance operational efficiency by enabling faster decision-making in defence procurement.
Senior officials, including Chief of Defence Staff General NS Raja Subramani, Defence Secretary Rajesh Kumar Singh, and DRDO Chairman Rajesh Kumar Singh, were present at the event in New Delhi. The launch represents a significant step in empowering India's defence research capabilities through enhanced financial autonomy and streamlined decision-making processes for strategic defence projects. The event also included participation from Secretary (Defence Production) Sanjeev Kumar, Secretary (Ex-Servicemen Welfare) Sukriti Likhi, Controller General of Defence Accounts Anugraha Narayana Das, DG (Naval Systems & Materials) RV Hara Prasad, DG (Resources & Management) Ravindra Singh, Additional Financial Advisor Ajeet Kumar Srivastava, and Director Maiya Din, demonstrating comprehensive government support for this defence sector reform initiative.
