Defence Minister Rajnath Singh formally released the Defence Procurement Manual (DPM) 2025 at South Block, New Delhi, on October 23, 2025. The 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).
Speaking at the event, Shri Singh appreciated the efforts of the MoD and HQ Integrated Defence Staff in revising the manual. He emphasized that the new DPM will simplify procedures, ensure uniformity, and support timely provision of goods and services essential for operational preparedness. The manual also aims to expand opportunities for MSMEs and start-ups in defence manufacturing and technology, while ensuring fairness, transparency, and accountability in procurement.
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.
The DPM 2025 is published in two volumes: Volume I contains procurement procedures across 14 chapters, including three new chapters on self-reliance through innovation and indigenisation, ICT procurement, and consultancy/non-consultancy services. Volume II includes forms, appendices, and government orders referenced in Volume I. The manual promotes Aatmanirbharta in Defence manufacturing and technology and is available online on the MoD website.
The release ceremony was attended by Chief of Defence Staff, Chiefs of Army, Navy and Air Staff, Defence Secretary, Chairman DRDO, Secretary (Defence Production), Secretary (Ex-Servicemen Welfare), Financial Advisor (Defence Services), Vice Chief of Air Staff, and other senior officials.
