New Delhi: Defence Minister Rajnath Singh has approved the Defence Procurement Manual (DPM) 2025, aimed at streamlining and simplifying revenue procurement for the Armed Forces.
The revised manual, last updated in 2009, is designed to ensure quicker decision-making, timely resource availability, and enhanced military preparedness.
Boost to Self-Reliance and Industry Participation
The new DPM emphasises Aatmanirbharta in defence manufacturing and technology, encouraging participation from private players, MSMEs, start-ups, and academia alongside DPSUs.
A dedicated chapter promotes indigenisation of defence items through collaboration with IITs, IISc, and other institutions.
Relaxed Provisions to Encourage Innovation
The manual introduces lenient penalty structures during development, including exemption from liquidated damages (LD) in the initial phase and capped LD at 5–10% for delays.
It also guarantees assured orders for up to five years (extendable in special cases) and provides technical support from the Services to ensure successful product development.
Greater Financial Powers and Efficiency
Competent Financial Authorities (CFAs) at field levels have been empowered with wider decision-making powers, including delivery extensions and bid opening date adjustments, without constant referrals to higher authorities.
Collegiate decision-making has been further strengthened to speed up the procurement process.
Improved Maintenance and Procurement Flexibility
To reduce equipment downtime, the manual allows for 15% upfront growth in repair, refit, and maintenance work for aerial and naval platforms.
Limited Tendering has been permitted up to ₹50 lakh (and beyond in exceptional cases), while proprietary procurements can proceed under a Propriety Article Certificate with parallel efforts to identify alternatives.