Defence Minister Rajnath Singh on Thursday released the Defence Procurement Manual (DPM) 2025 at a ceremony in South Block, New Delhi. The manual, effective from November 1, aims to simplify procurement procedures, bring uniformity in functioning, and enhance operational preparedness of the Armed Forces.
The new manual will govern revenue procurement worth approximately ₹1 lakh crore by the three Services and other establishments under the Ministry of Defence. Addressing the gathering, Singh said the revised guidelines will also provide increased opportunities for MSMEs and start-ups in defence manufacturing and technology, ensuring transparency, fairness, and accountability in procurement processes.
Financial Advisor (Defence Services) Dr. Mayank Sharma briefed attendees on the manual, highlighting that it was prepared in close consultation with the Services and other stakeholders to ensure efficiency and ease of implementation.
The DPM 2025 includes several key changes to promote ease of doing business. Liquidated damages for delayed delivery of goods and services have been relaxed, with a maximum of 10% applicable only in cases of inordinate delay. In projects under indigenisation, the penalty has been reduced to 0.1% per week, compared to 0.5% in other cases. The manual also introduces provisions for assured orders extending up to five years for items developed by public and private players under indigenisation initiatives.
Other notable changes include the removal of the requirement for a ‘No Objection Certificate’ from the erstwhile Ordnance Factory Board before procuring from other sources, and an upfront provision for 15% growth in work during ship repairs, refits, or aviation equipment overhauls. The provisions related to procurement under the Proprietary Article Certificate (PAC) system have been redefined, maintaining a validity of two years.
All Requests for Proposals (RFPs) issued after November 1, 2025, will be governed by the DPM 2025, while cases issued before this date will continue under the provisions of DPM 2009. RFPs reissued after November 1 will also follow the new manual.
For ease of use, the manual has been divided into two volumes. Volume I contains the main procurement procedures, while Volume II includes forms, appendices, and related government orders. Volume I has fourteen chapters, including three new ones: Promoting Self-Reliance through Innovation and Indigenisation, Information and Communication Technology Procurement, and Consultancy and Non-Consultancy Services. The chapter on self-reliance aims to encourage indigenous design and development of defence items, supporting the government’s Aatmanirbharta vision. A soft copy of the manual has been made available on the Ministry of Defence website.