Defence Minister Rajnath Singh has officially launched the Defence Procurement Manual (DPM) 2025 at South Block, New Delhi, with the manual set to take effect from November 1, 2025. This key initiative is anticipated to facilitate revenue procurement amounting to around Rs 1 lakh crore for the three Services and various establishments under the Ministry of Defence (MoD).
During the launch event, Singh expressed appreciation for the hard work put in by the MoD and the Headquarters Integrated Defence Staff in the revision of the manual. He underscored that the updated DPM aims to streamline procedures, establish uniformity, and ensure timely acquisition of goods and services vital for maintaining operational readiness. Importantly, the manual is designed to enhance opportunities for micro, small, and medium enterprises (MSMEs) and start-ups involved in defense manufacturing and technology, while also enforcing principles of fairness, transparency, and accountability throughout the procurement process.
The DPM 2025 introduces several significant features. One major update is the relaxation of Liquidated Damages (LD), wherein the maximum LD of 10% will now apply only in cases of excessive delays. For indigenous products, the LD will be set at 0.1% per week, a reduction from the previous 0.5%. Additionally, the manual allows for assured orders spanning up to five years, or longer, specifically for items that have been developed domestically.
To improve efficiency, the DPM has instituted a Limited Tender Enquiry process that applies to procurements up to Rs 50 lakh, with provisions for exceptional cases that may exceed this limit. The procurement approval process has also been simplified, with the requirement for a ‘No Objection Certificate’ from the old Ordnance Factory Board eliminated.
Furthermore, the manual includes provisions to support operational readiness, ensuring an upfront allocation for a 15% increase in Repair/Refit of ships and aviation equipment to minimize downtime. The validity period for the Proprietary Article Certificate has been defined, remaining intact for two years.
The DPM 2025 is published in two volumes. Volume I encompasses procurement procedures structured across 14 chapters, introducing three new chapters focused on self-reliance through innovation and indigenisation, Information and Communication Technology (ICT) procurement, and consultancy/non-consultancy services. Volume II serves as a supplement, containing necessary forms, appendices, and government orders cited in Volume I. The manual strongly promotes the initiative of Aatmanirbharta (self-reliance) in defense manufacturing and technology and is readily accessible online on the MoD website.
The release ceremony was graced by notable figures, including the Chief of Defence Staff, the Chiefs of the Army, Navy, and Air Staff, along with the Defence Secretary, Chairman of the Defence Research and Development Organisation (DRDO), Secretary for Defence Production, Secretary for Ex-Servicemen Welfare, the Financial Advisor for Defence Services, the Vice Chief of Air Staff, and several other senior officials.
