New Delhi: In a move that will fast track several defence deals, the Cabinet Committee on Security has increased the financial powers of Defence Minister Manohar Parrikar from Rs 500 crore to Rs 2,000 crore, a whopping four-fold hike. Sources in the Defence Ministry told UNI that the decision to increase the financial powers was taken in the recent meeting of the CCS, headed by Prime Minister Narendra Modi.
After this decision,the necessity to take approval from the CCS for any deal less than that of Rs 2,000 crore will automatically get removed. Earlier, any defence deal involving Rs 500 crore and above was to take the CCS route. The decision is aimed at reducing the procedural hurdles that involve the defence procurement, making the process of modernisation of the Armed Forces tardy and in many cases unending.
The move comes in the wake of allocation of over Rs 86,000 crore for the defence forces in the Capital outlay, which is spend for purchasing new weapon systems and platforms. With the increase of financial powers of the Defence Minister, roughly 40 to 50 per cent proposals of defence procurement need not go to the CCS, a process that takes longer than any other steps.
After the decision, the similar financial powers accorded to the Chief of the three Armed Forces are likely to witness the proportional increase, the sources indicated. There were many defence proposals pending with the Ministry, which involve Rs 2,000 crore or less. All such proposals will automatically get fast tracked now, said the sources. (UNI)