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The Ministry of Defence has released the Delegation of Financial Powers to DRDO (DFP-2026) to provide greater financial autonomy to the Defence Research and Development Organisation (DRDO), with the objective of accelerating indigenous defence research, development and innovation.

About DFP-2026

The Delegation of Financial Powers to DRDO (DFP-2026) is a revised financial governance framework that empowers DRDO with enhanced financial decision-making authority for defence research and development projects. It aims to reduce procedural delays, improve project execution, and facilitate the timely development and induction of indigenous defence technologies.

The framework seeks to strengthen India's Atmanirbhar Bharat vision in the defence sector by enabling faster approvals, greater operational flexibility, and improved financial efficiency.

Key Features

DFP-2026 provides greater financial autonomy to DRDO laboratories and project authorities, allowing quicker approval and execution of research and development programmes.

Its major features include:

• Enhanced Financial Delegation: Higher financial powers for faster approval and implementation of defence R&D projects.
• Dedicated Funding for Trials: Separate financial provisions for testing, evaluation and user trial campaigns of defence systems.
• Support for Early-Stage Research: Funding for pre-project research activities to encourage innovation before formal project sanction.
• Separate Funding Streams: Independent financial schedules for Extra-Mural Research Projects (EMRPs) and Defence Innovation Accelerator–Centres of Excellence (DIA-CoEs) to strengthen collaboration with academia, industry and startups.
• Improved Financial Governance: Simplified procedures with greater accountability and transparency in utilisation of research funds.

About DRDO

The Defence Research and Development Organisation (DRDO) is India's premier defence research agency functioning under the Ministry of Defence.

Established in 1958, DRDO is responsible for the design, development and evaluation of defence technologies and systems required by the Indian Armed Forces. It works across diverse domains including missiles, aeronautics, combat vehicles, naval systems, electronics, cyber technologies, artificial intelligence, life sciences and advanced materials.

Significance

The DFP-2026 framework is expected to significantly reduce administrative delays in defence research by providing greater financial flexibility to DRDO. By supporting early-stage innovation, dedicated testing infrastructure and stronger collaboration with academia, startups and industry, it will accelerate the development of indigenous defence technologies, strengthen the domestic defence industrial ecosystem, and contribute to the objectives of Atmanirbhar Bharat and enhanced national security.