Defence Minister Grants DRDO Enhanced Financial Powers For Faster R&D Execution

Defence Minister Rajnath Singh on Monday unveiled the Delegation of Financial Powers (DFP-2026) for the Defence Research and Development Organisation (DRDO), introducing a new framework aimed at accelerating the execution of defence research and development projects. The revised policy seeks to improve accountability, operational efficiency and the timely implementation of key research programmes by expanding the financial and administrative powers available to the organisation at various levels. The initiative is expected to streamline decision-making and strengthen India's defence innovation ecosystem.

The DFP-2026 significantly enhances the functional and financial autonomy of the Defence Department's research and development wing, enabling faster approval and execution of critical projects. The revised framework includes dedicated financial provisions for trial campaigns, testing and evaluation activities, as well as the sanctioning of pre-project research and development programmes. By decentralising financial authority, the government aims to reduce procedural delays that often affect the development of advanced defence technologies.

The updated structure also provides specific financial allocations for grants-in-aid supporting Extra-Mural Research Projects, Defence Innovation Accelerator-Centres of Excellence and Technology Development Fund initiatives. These measures are intended to encourage greater collaboration between DRDO, academic institutions, industry partners and startups engaged in defence innovation. Officials believe the expanded financial powers will help speed up technology development while promoting wider participation in strategic research projects.

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Alongside DFP-2026, the government also highlighted the objectives of the Delegation of Financial Powers to Defence Services (DFPDS-2026), which focuses on improving operational efficiency through faster decision-making in defence acquisitions. The framework aims to accelerate the development, production and induction of systems, platforms and indigenous technologies emerging from the research and development ecosystem into the armed forces. The reforms are expected to shorten procurement timelines and strengthen military preparedness.

Speaking at the event, Rajnath Singh said the reforms would enhance cooperation between industry, academia and research institutions while advancing the government's vision of Aatmanirbhar Bharat. He stated that empowering DRDO with greater financial and administrative flexibility would strengthen India's self-reliance in defence technologies and improve the country's long-term defence preparedness. The reforms are also intended to foster innovation by enabling quicker execution of high-priority research projects.

The launch event in New Delhi was attended by several senior defence officials, including Chief of Defence Staff General NS Raja Subramani, Defence Secretary and DRDO Chairman Rajesh Kumar Singh, along with senior officials from the Department of Defence Production and representatives from the armed forces. The introduction of DFP-2026 marks another step in the government's broader effort to modernise India's defence research ecosystem, improve project execution and support the development of indigenous military capabilities through faster and more efficient governance mechanisms.

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