Defence can clear purchases up to Rs 500 cr

The Cabinet Committee on Security (CCS) on Tuesday empowered Defence Minister A K Antony to approve military hardware purchases up to Rs 500 crore on his own,and up to Rs 1,000 crore with the concurrence of the Finance Minister. The previous limit for the Defence Minister was Rs 100 crore and that of Finance Minister Rs 200 crore.

With Tuesday’s approval,capital acquisitions only above Rs 1,000 crore would be brought to CCS for approval. Sources said that Finance Minister Pranab Mukherjee backed the enhanced limit citing the need for speedy clearances to defence purchases as well as the increase in the financial powers of other administrative ministries from Rs 100 crore to Rs 150 crore last April. The new limits were agreed to by Mukherjee and Antony and had been sent to Prime Minister Manmohan Singh for approval so that the Transaction of Business Rules could be suitably amended.

The CCS proposal recommended greater financial autonomy to the two ministers on grounds that defence purchases were a “peculiar requirement” considering the ongoing defence modernisation programme with India adding strategic weight in global terms.