Rajnath Singh interacts with soldiers (Photo: MoD)
New Delhi: The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, on Friday approved the extension of the Emergency Procurement (EP) framework until January 15, 2026, aimed at enhancing the armed forces’ operational preparedness.
According to sources in the defence ministry, the DAC meeting held on Friday discussed only the Emergency Procurement proposal. The remaining agenda items were deferred, and a full DAC meeting is now expected to take place on December 29, during which several key defence procurement projects will be considered.
The Emergency Procurement mechanism was introduced following the May 2020 standoff with China’s People’s Liberation Army (PLA) in eastern Ladakh. Under this framework, enhanced financial powers were delegated to the Vice Chiefs of the Army, Navy, and Air Force to address urgent and immediate military requirements. These include preparedness for war or war-like situations, natural disasters, and other unforeseen contingencies.
The objective of delegating these powers is to fast-track the procurement and repair of equipment, materials, stores, and essential services required for the successful conduct of operations.
Under the current provisions, the Competent Financial Authority (CFA) for Emergency Procurement (Capital) up to ₹300 crore rests with the Vice Chiefs of Staff of the three services.
For the financial year 2025–26, the government has allocated ₹6,81,210.27 crore for defence, of which ₹1,80,000 crore has been earmarked for capital acquisition.
The government’s financial year runs from April 1 to March 31, forming the basis for annual budgeting and financial planning. Defence expenditure is broadly divided into capital and revenue heads. Capital expenditure covers the acquisition of new systems, equipment, and the development of military infrastructure, while revenue expenditure (excluding salaries) is allocated for sustenance and operational requirements of the armed forces.
