Rajnath Singh Unveils Defence Procurement Manual 2025 to Streamline Processes and Enhance Indigenisation
On October 23, 2025, Defence Minister Rajnath Singh officially unveiled the Defence Procurement Manual (DPM) 2025 at South Block in New Delhi. The manual, set to be implemented from November 1, 2025, is projected to streamline revenue procurement activities for the three Services and other Ministry of Defence (MoD) entities, with an estimated procurement value of approximately Rs 1 lakh crore.
During the event, Rajnath Singh commended the Ministry of Defence and the Headquarters Integrated Defence Staff for their efforts in revising the manual. He highlighted that the updated DPM is designed to simplify processes, standardize procedures, and ensure the timely acquisition of goods and services critical for operational readiness. The manual also seeks to enhance opportunities for Micro, Small and Medium Enterprises (MSMEs) and start-ups in the defence sector, while maintaining fairness, transparency, and accountability in the procurement process.
Key Features of DPM 2025:
| Relaxed Liquidated Damages (LD): | Maximum LD of 10% will apply only in cases of inordinate delays; for indigenisation, LD is 0.1% per week instead of 0.5%. |
| Assured Orders: | Provision for orders up to five years or beyond for items developed indigenously. |
| Limited Tender Enquiry: | Applicable up to Rs 50 lakh; exceptional cases beyond this limit. |
| Simplified Procurement Approvals: | ‘No Objection Certificate’ from the erstwhile Ordnance Factory Board is no longer required. |
| Operational Readiness Support: | Upfront provision for 15% growth in Repair/Refit of ships and Aviation equipment to reduce downtime. |
| PAC Provisions Redefined: | Proprietary Article Certificate validity maintained for 2 years. |
DPM 2025 is divided into two volumes. Volume I covers procurement procedures across 14 chapters, incorporating three new chapters focusing on innovation and indigenisation, ICT procurement, and consultancy/non-consultancy services. Volume II consists of forms, appendices, and government orders cited in Volume I. This comprehensive manual supports the goal of Aatmanirbharta in defence manufacturing and technology, and is accessible online via the MoD website.
The ceremony was attended by several key officials, including the Chief of Defence Staff, the Chiefs of the Army, Navy, and Air Staff, the Defence Secretary, the Chairman of DRDO, the Secretary of Defence Production, the Secretary of Ex-Servicemen Welfare, the Financial Advisor for Defence Services, the Vice Chief of Air Staff, along with other senior officials.
