We would like project admins to make fields mandatory or not in their project.
I understand this can be done by jira-admins by creating a new field configuration and associating it with the project; but my requirement is to give this ability to project admins.
Is it possible?
Nope. As you've probably read already in several places, it's an admin only task.
You'll have to find a plugin for a workaround (For mandatory fields, I don't remember seeing any that would do it really) or wait for https://jira.atlassian.com/browse/JRA-3156
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