![](https://bharatshakti.in/wp-content/uploads/2024/03/LT-BSI-Defence.gif")
Defence Minister Rajnath Singh on Wednesday released the Defence Procurement Manual (DPM) 2025 at South Block, introducing a comprehensive framework to simplify and modernise revenue procurement procedures across the Armed Forces and other establishments under the Ministry of Defence (MoD). The new manual, which comes into effect on November 1, 2025, will govern revenue procurements estimated at around Rs 1 lakh crore annually.
Speaking at the launch, Singh said the revised manual aims to “simplify procedures, bring uniformity in functioning, and ensure timely availability of goods and services required by the Armed Forces for operational preparedness.” He added that the DPM 2025 will enhance opportunities for MSMEs and start-ups in defence manufacturing and technology, while maintaining fairness, transparency, and accountability.
The Defence Minister commended the MoD and the HQ Integrated Defence Staff for revising the manual in consultation with the Services and other stakeholders. Mayank Sharma, Financial Advisor (Defence Services), presented an overview of the new provisions and highlighted the consultative process behind the revision.
Key Reforms in DPM 2025
The DPM 2025 introduces a series of procedural relaxations and reforms aimed at expediting decision-making and promoting ease of doing business:
- Relaxed Penalties for Delay: Liquidated damages (LD) on delayed delivery of stores and services have been rationalised. The maximum LD cap of 10% will apply only in cases of inordinate delay. For indigenisation projects, the LD has been reduced to 0.1% per week, down from 0.5% earlier.
- Assured Orders for Indigenous Products: The manual allows for assured orders of up to five years and beyond for items developed by public or private players under indigenisation, encouraging long-term investment in domestic capabilities.
- Simplified Tendering: Limited Tender Enquiry can now be used for procurements up to Rs 50 lakh, and in exceptional cases, beyond that limit.
- Ease for Non-OFB Procurement: The earlier requirement of obtaining a No Objection Certificate from the erstwhile Ordnance Factory Board before sourcing from alternate vendors has been removed.
- Faster Maintenance and Overhaul: A new provision allows upfront allocation for 15% growth in work related to ship repair/refit and aviation equipment overhaul, aimed at reducing downtime and maintaining operational readiness.
- Revised PAC Procurement Rules: The framework for Proprietary Article Certificate (PAC) procurements has been revised, with the certificate validity remaining at 2 years.
Implementation and Structure
All Requests for Proposal (RFPs) issued on or after November 1, 2025, will be governed by DPM 2025. RFPs issued up to October 31, 2025, will continue to be governed by the DPM 2009 provisions. Cases where RFPs are retracted and reissued after November 1 will also fall under the new manual.
The DPM 2025 is structured in two volumes:
- Volume I details the main procurement procedures across 14 chapters, including three newly added ones—Promoting Self-Reliance through Innovation and Indigenisation, ICT Procurement, and Consultancy & Non-Consultancy Services.
- Volume II contains all relevant forms, appendices, and government orders referenced in Volume I.
The new chapter on promoting self-reliance is designed to strengthen indigenous design, development, and manufacturing of defence items, aligning with the government’s Atmanirbhar Bharat vision in defence production.
The soft copy of DPM 2025 has been made available on the Ministry of Defence website for public access.
Team BharatShakti
