Last Updated on September 15, 2025 12:50 am by BIZNAMA NEWS
Staff Reporter / New Delhi
Defence Minister Mr Rajnath Singh has approved the new Defence Procurement Manual (DPM) 2025, designed to streamline, simplify, and rationalise the revenue procurement process in the Ministry of Defence. The updated manual seeks to meet the emerging needs of the Armed Forces in modern warfare while enhancing self-reliance and expediting decision-making.
Replacing the 2009 edition, the revised DPM is aligned with the latest procurement norms of the Ministry of Finance and incorporates technology-driven transparency and accountability. It governs revenue procurements worth nearly ₹1 lakh crore in the current fiscal year.
The manual aims to strengthen Aatmanirbharta in defence manufacturing by encouraging active participation from private industry, MSMEs, start-ups, and academia, alongside established Defence Public Sector Undertakings (DPSUs). A new chapter promotes innovation and indigenisation, enabling collaboration with IITs, IISc, and other research institutions for the design and development of defence items and spares.
To support industry participation, the manual eases development contract rules by limiting liquidated damages (LD) to a maximum of 5%, except in extreme delays where it may go up to 10%. No LD will be levied during prototype development, incentivising genuine efforts. In addition, suppliers will benefit from guaranteed orders for up to five years, extendable under special circumstances, along with technical handholding by the Services.
Field-level empowerment is another major thrust. Competent Financial Authorities (CFAs) now enjoy greater autonomy in extending delivery deadlines, adjusting bid opening dates, and ensuring timely supplier payments, reducing bureaucratic delays. Collegiate decision-making practices have also been reinforced to boost efficiency.
To improve readiness, a 15% growth provision has been added for complex repair and maintenance work on aerial and naval platforms, cutting downtime. The manual also allows limited tendering up to ₹50 lakh and, for proprietary items, purchases based on Propriety Article Certificates, with efforts to identify alternative suppliers.
Furthermore, the DPM 2025 addresses level playing field concerns by scrapping the requirement of obtaining No Objection Certificates from DPSUs before open bidding. Competitive, transparent processes will now drive contracts. Provisions have also been made to streamline procurement under Government-to-Government agreements for high-value acquisitions.
Defence Minister Mr Rajnath Singh emphasised that the manual will ensure timely availability of critical resources, foster jointness among the three Services, and uphold the highest levels of military preparedness.
