The decision in this regard was understood to have been taken at a meeting of the Cabinet Committee on Security (CCS), sources said here.
The enhancement in financial powers would mean that the Services headquarters would be able to take up procurements upto Rs 150 crore on their own, they said.
Financial powers of various other formation commanders such as Corps Commander and others are also expected to go up after the sanction, they said.
As per government rules, the Defence Minister has financial powers to sanction procurement upto Rs 500 crore for the armed forces.
For procurements above Rs 1,000 crore, the Defence Ministry has to seek the clearance of the Cabinet Committee on Security headed by the Prime Minister.
In recent times, financial powers of various departments under the Ministry have come under the scanner of internal auditors who have raised objections to the way in which these powers have been used.
After the reports came, the Defence Ministry has put in more checks and balances on the spendings by the departments under it.
In-principle approval to the proposal for hiking financial powers of the forces was given at a meeting Defence Minister A K Antony in May last year.
