New Delhi [India], September 14 (ANI): Defence Minister Rajnath Singh has approved the Defence Procurement Manual (DPM) 2025, aimed at streamlining, simplifying, and rationalising revenue procurement in the Ministry of Defence to meet the evolving requirements of the Armed Forces in modern warfare.
The new manual seeks to achieve self-reliance in defence procurement under the Revenue Head (Operations & Sustenance Segment) and foster greater jointness among the three Services. It is designed to ensure timely availability of resources at optimal costs, expedite decision-making, and strengthen Aatmanirbharta in defence manufacturing and technology. The manual encourages active participation of private players, MSMEs, start-ups, alongside Defence Public Sector Undertakings (DPSUs).
The DPM, last updated in 2009, governs procurement of goods and services worth around Rs 1 lakh crore for the current financial year. The 2025 revision incorporates latest developments in public procurement and emphasises the use of technology with fairness, transparency, and accountability. It has been aligned with the Ministry of Finance’s Manual for Procurement of Goods and introduces a new chapter promoting self-reliance through innovation and indigenisation. This includes collaboration with public/private industries, academia, IITs, IISc, and other institutions to leverage young talent in defence design and development.
Key reforms in the DPM 2025 include relaxation of provisions for development contracts, including reduced Liquidity Damages (LD) during prototype development (minimal LD of 0.1%) and capped maximum LD at 5%, rising to 10% only for significant delays. Assured orders are provided for up to five years, extendable for special circumstances. The manual also allows handholding support from Services for technical know-how and equipment sharing to ensure successful development. Competent Financial Authorities (CFAs) at field and lower formation levels have been empowered to expedite decisions, grant delivery extensions, and avoid unnecessary file movement. Collegiate decision-making has been strengthened, including authority to adjust bid opening dates to increase participation. An upfront 15% provision has been introduced for growth in repair, refit, and maintenance of aerial and naval platforms to reduce equipment downtime. Limited Tendering is allowed for specialised goods up to Rs 50 lakh, with provisions for proprietary items under a Propriety Article Certificate while exploring alternative sources. Procedures for Government-to-Government (G2G) procurement have been streamlined, ensuring fair and competitive bidding without unnecessary restrictions from DPSUs.
The DPM 2025 is expected to empower the Armed Forces with timely access to necessary resources, enhance operational readiness, and facilitate a more competitive and self-reliant defence manufacturing ecosystem. (ANI)
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