(MENAFN- KNN India) New Delhi, Oct 24 (KNN) Defence Minister Rajnath Singh released the Defence Procurement Manual (DPM) 2025 at a function held in South Block, New Delhi, on October 23, 2025.

The new manual, effective from November 1, 2025, is expected to facilitate revenue procurement worth approximately Rs 1 lakh crore by the three Services and other establishments under the Ministry of Defence (MoD).

Singh highlighted that DPM 2025 will simplify procurement procedures, standardise processes across services, and ensure timely provision of goods and services necessary for operational preparedness.

He also noted that the revised framework will create greater opportunities for MSMEs and startups in defence manufacturing and technology while maintaining fairness, transparency, and accountability.

Financial Advisor (Defence Services) Dr. Mayank Sharma provided an overview of DPM 2025, emphasising that the manual was developed in close consultation with the armed services and other stakeholders.

The Defence Procurement Manual (DPM) 2025 introduces several key features aimed at streamlining defence acquisitions.

Liquidated damages (LD) have been relaxed for delayed deliveries, with a maximum of 10 percent applied only in cases of inordinate delay, and for indigenisation, LD is capped at 0.1 percent per week instead of 0.5 percent.

The manual provides for assured orders of up to five years or more for items developed by public or private players under indigenisation.

Limited tender enquiries are now permissible for procurements up to Rs 50 lakh, with higher thresholds allowed in exceptional cases.

The requirement to obtain a No Objection Certificate from the erstwhile Ordnance Factory Board has been removed to simplify approvals.

Operational readiness is enhanced through an upfront provision for 15 percent growth in repair and refit of ships, as well as repair and overhaul of aviation equipment, reducing downtime.

Additionally, procurement under the Proprietary Article Certificate (PAC) has been redefined while maintaining its original two-year validity.

All Request For Proposals (RFPs) issued after November 1, 2025, will follow DPM 2025 provisions, while those issued before October 31, 2025, will continue under DPM 2009 (amended).

RFPs reissued on or after November 1, 2025, will adhere to DPM 2025.

This revision of the procurement manual is expected to streamline processes, promote indigenous innovation, and enhance efficiency in defence acquisition, benefiting both the armed forces and domestic defence industry stakeholders.

(KNN Bureau)

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