Rajnath Singh Approves Revised Defence Procurement Manual 2025 to Enhance Military Readiness and Industrial Growth
Defence Minister Rajnath Singh has given the go-ahead for the revised Defence Procurement Manual (DPM) 2025, marking a significant move to simplify and accelerate the revenue procurement procedures for India’s Armed Forces. This revision, the first in over 15 years, is anticipated to fortify the nation's military readiness, while also furthering the government's initiative of Aatmanirbhar Bharat in defence production.
The DPM 2025 oversees procurements under the Revenue Head amounting to nearly ₹1 lakh crore. It emphasizes simplicity, transparency, and fairness in acquiring defence assets. Additionally, it aims to empower the domestic sector, including MSMEs, start-ups, and academic institutions, by fostering innovation, indigenisation, and collaborative R&D with Defence Public Sector Undertakings (DPSUs).
Key aspects of the revised manual include:
| Feature | Details |
|---|---|
| Ease of Doing Business | Relaxed contract provisions, reduced penalties, and supportive financing options for industries to address working capital challenges. |
| Boost to R&D | Special provisions to encourage in-house design and development in collaboration with IITs, IISc, private firms, and young innovators. |
| Industry Incentives | No Liquidated Damages (LD) during prototype development, capped LD at 5% (10% in extreme delays), and assured guarantee of orders for up to 5–10 years. |
| Faster Decision-Making | Competent Financial Authorities at lower levels empowered to grant delivery extensions and take decisions without higher-level approvals. |
| Operational Readiness | A 15% upfront growth provision for repair/refit of aerial and naval platforms to reduce downtime of critical assets. |
| Level Playing Field | Dispensing with the requirement of NOCs from DPSUs, ensuring tenders are awarded on a competitive basis. |
The updated manual aligns with the Ministry of Finance's procurement guidelines and features a dedicated chapter on innovation and indigenisation. It also simplifies Government-to-Government procurements for large-scale defence transactions.
According to officials, DPM 2025 will not only guarantee the timely availability of essential resources for the Services but will also promote greater integration among the Army, Navy, and Air Force. This will make India’s defence infrastructure more robust, transparent, and conducive to industrial collaboration.
