New Delhi
Defence Minister Rajnath Singh on Sunday approved the Defence Procurement Manual (DPM) 2025, marking a major step in streamlining and rationalising the revenue procurement process for the Armed Forces. The new manual is aimed at simplifying procedures, enabling faster decision-making, and catering to the emerging operational requirements of the defence sector.
According to officials, DPM 2025 seeks to achieve self-reliance under the Revenue Head (Operations and Sustenance Segment) and foster jointness among the three Services. The manual will ensure timely availability of critical resources at appropriate costs, while strengthening ease of doing business and promoting Aatmanirbharta in defence manufacturing and technology. The updated framework emphasises active participation from private players, MSMEs, start-ups, and established Defence Public Sector Undertakings (DPSUs). It also aligns with the Ministry of Finance’s latest procurement provisions and includes a new chapter on indigenisation and innovation. The manual encourages in-house design and development of defence items in collaboration with academia, IITs, IISc, and private institutions, utilising the expertise of young professionals.
Several measures have been introduced to incentivise suppliers, including relaxed provisions for development contracts, minimal or capped liquidity damages, and assured orders for up to five years. Competent Financial Authorities (CFAs) have been empowered to expedite decision-making, manage delivery extensions, and ensure timely payments, reducing bureaucratic delays. The revised manual also accounts for repair, refit, and maintenance complexities of aerial and naval platforms by providing a 15 per cent growth margin to reduce equipment downtime. Officials highlighted that DPM 2025 will enhance operational readiness while supporting India’s broader goal of self-reliance in defence.
