What is DRDO DFP-2026? Rajnath Singh unveils new financial powers framework

Union Defence Minister Rajnath Singh on Monday, June 29, launched a revised framework to accelerate defence research and development (R&D) projects through the Defence Research and Development Organisation (DRDO). The framework -- officially known as Delegation of Financial Powers (DFP) 2026 -- is set to speed up financial approvals and project execution, leading to faster delivery of critical defence technologies and weapon systems in the country.

DRDO is the country's premier defence R&D agency that functions under the Ministry of Defence.

The document seeks to strengthen accountability while making decision-making more efficient at different levels within DRDO.

The 2026 document lays down financial delegation limits for aspects like:

• Procurement approvals
• Sanctions
• Project expenditure
• Grants
• Testing expenses
• Other research-related financial activities

The release of the latest DFP is expected to complement these efforts by creating a faster financial approval mechanism for research, testing and technology development activities.

Defence Minister Rajnath Singh launches a revised framework to accelerate defence R&D projects across the organisation

In recent years, the central government has increasingly emphasised stronger participation from Indian industry, start-ups and academia in defence research.

According to official data released earlier, DRDO transferred 1,950 technologies to Indian industry, signed 256 licensing agreements during 2024, selected more than 19 Development-cum-Production Partners and Production Agencies for mission-mode projects. It carried out more than 18,000 tests for private industry and defence public sector undertakings over the previous three years.