Sitharaman delegates greater financial powers to DRDO units

Defence Minister Nirmala Sitharaman has decided to delegate greater financial powers to various establishments within the Defence Research and Development Organisation to enhance efficiency and effectiveness, an official statement said today.

The step is intended to neutralise the "ill-effects of over-centralisation" and facilitate quicker decision making. the Defence Ministry statement said.

It is also in line with similar financial delegations made to the armed forces in the last one year, it said.

The powers of the secretary, Defence Research and Development to sanction projects and procure equipment have been enhanced from Rs 75 crore to Rs 150 crore and for the directors general (DG) of the establishments from Rs 50 crore to Rs 75 crore.

The DRDO has several laboratories which focus on different aspects of defence research.

The powers of the directors general to sanction research projects to universities, technological institutions and the indigenous defence industry under the Technology Development Fund Scheme of the DRDO have been increased from Rs 3 crore to Rs 5 crore.

Delegation of powers for hygiene and maintenance contracts, training expenses, miscellaneous and contingent activities have been rationalised and enhanced to ensure that sanctions are given at the director and director general levels with minimal flow of files to the DRDO headquarters, the statement said.

"The powers for sanctioning of projects and for procurement that were hitherto with the Secretary, Defence R&D have now been delegated to the Directors General of DRDO and the delegation to the Secretary, Defence R&D has been doubled," it said.