Government grants emergency funds to armed forces amid India-China face-off

The centre has granted emergency financial powers to three services to enhance their war preparedness. 

Created On: Jun 22, 2020 15:58 IST
India-China face off
India-China face off

The government has granted emergency funds up to Rs 500 crore per procurement project to the three armed services to buy ammunition and weapons in view of the escalating border standoff with China.

The special financial powers have been given to the armed forces to procure weapons and military hardware at short notice to enhance their operational preparedness along the Line of Actual Control (LAC).

The government has also decided to relax certain rules to reduce delays in military purchases such as allowing the three armed services to procure required weapons and equipment from a single vendor. 

Key Highlights 

The centre has decided to provide the emergency fund to the three services to enhance their war preparedness. 

The three services can use the emergency financial powers to buy any new weapon system up to Rs 500 crore. 

The three forces have already started preparing a list of weapons and equipment that they require and can procure in the shortest possible time. 

The Indian Army is going to use the emergency financial powers to expand its stock of ammunition.

The three services have stocked up several spares and missiles that were short in supply in the last four years after the September 2016 Uri attack.


The latest development comes as 20 Indian soldiers were martyred during a violent border face-off between Indian and Chinese troops at the Galwan Valley in Eastern Ladakh on June 15. The violent face-off triggered heightened tensions between the two sides, leading to high-level talks to deescalate the situation. 

The Indian and Chinese troops were engaged in a standoff at Galwan and several other areas in Eastern Ladakh since May 5 when their troops clashed on Pangong Tso lake.


Union Defence Minister Rajnath Singh has directed the Indian Army, the Indian Navy and the Indian Air Force to enhance their operational readiness along the LAC amid rising tensions between India and China. The LAC is the Line of Actual Control, a 3,500 km de-facto border between India and China.

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