Rajnath Singh praises DAD's role in Operation Sindoor

Defence Minister Rajnath Singh recently highlighted the pivotal yet understated contributions of the Defence Accounts Department (DAD) during Operation Sindoor. This operation underscored the importance of efficient resource utilization, financial management, and war preparedness, showcasing DAD's essential role in supporting India's Armed Forces. Speaking at the 278th Foundation Day celebrations of the DAD in New Delhi, Singh emphasized the department's historic legacy and its ongoing role as the financial backbone of the military.

Singh described the DAD as more than just an accounting body, portraying it as an enabler that ensures the smooth functioning of the nation's economic cycle. He referred to it as the "invisible bridge" connecting finance and the Armed Forces, highlighting that behind the valor of soldiers lies the department's silent but decisive contribution. This recognition comes at a time when the complexity of modern, technology-driven warfare is increasing, necessitating a renewed focus on defense research and development (R&D).

The Defence Minister commended the DAD for its embrace of modern technology under the Digital India initiative. He highlighted the success of projects such as the e-Raksha Awaas, the upgrade from NIDHI 1.0 to NIDHI 2.0, and the ongoing transition to TULIP 2.0, all of which aim to enhance efficiency in financial processes. These initiatives are part of a broader push to integrate technology into defense operations, ensuring that the Armed Forces are well-prepared for the challenges of modern warfare.

Enhancing Defense Procurement and Financial Management

Singh also drew attention to the government's emphasis on jointness and integration among the Tri-Services, urging the DAD to act as a financial enabler in this process. He noted that the department's presence from the grassroots level to the headquarters of all three services positions it uniquely to facilitate jointness and integration through financial processes. This, he argued, would yield positive results for Tri-Services synergy.

The Defence Minister's remarks come against the backdrop of a broader push for efficiency and speed in defense procurement. He pointed out that the new Defence Procurement Manual 2025 had been launched to expedite revenue procurement and promote self-reliance. Similarly, the ongoing review of the Defence Acquisition Procedure (DAP) is expected to streamline capital procurement, further enhancing the efficiency of defense operations.

Singh underlined the importance of finance as the lifeblood of governance, stating that the strength of a nation is reflected in the strength of its financial foundation. He praised the DAD for ensuring that as of September 30, 50 percent of the capital budget expenditure had already been booked, a clear reflection of efficient utilization. The department's achievement of 100 percent utilization in the previous financial year was also commended, with Singh expressing confidence that this momentum would continue.

Recognizing Excellence and Future Initiatives

During the event, the Raksha Mantri Awards for Excellence 2025 were presented to recognize outstanding achievements by teams and individuals in implementing key reforms and projects. Singh also unveiled several initiatives, including the Comprehensive Statistical Handbook on Defence Expenditure (COSHE) 2025, the updated Army Local Audit Manual (ALAM), and digital platforms such as NIDHI 2.0 and the AI-powered 'Gyan Sathi'. These initiatives are part of a broader effort to make the DAD a 'Centre of Excellence in Defence Finance and Economics'.

The Defence Minister's remarks highlight the critical role of the DAD in ensuring financial resilience and operational readiness for the Armed Forces. This recognition is particularly significant in light of the increasing complexity of modern warfare, which requires a robust financial and technological infrastructure to support military operations.