Defence Procurement Manual 2025 - Summary
Raksha Mantri Shri Rajnath Singh released the Defence Procurement Manual (DPM) 2025 at a function in South Block, New Delhi on October 23, 2025. Effective from November 01, 2025, the new procurement manual will facilitate the revenue procurement amounting to approx Rs 1 (one) lakh crore by the three Services and other establishments under Ministry of Defence (MoD).
Salient Features of DPM 2025
- Ease of Doing Business:
- Several key provisions have been modified to speed up decision-making and promote ease of doing business.
- Liquidated Damages (LD) for delayed delivery of stores and services have been relaxed.
- Maximum LD of 10% will be levied only in cases of inordinate delay.
- For indigenisation cases, LD has been further reduced to 0.1% per week (earlier 0.5% per week).
- Assured Orders and Tender Provisions:
- Assured orders are now available for up to five years or more for items developed by public/private players under indigenisation.
- Limited Tender Enquiry can be used for procurement up to ₹50 lakh, and beyond that only in exceptional cases.
- Simplification Measures:
- The requirement of obtaining a ‘No Objection Certificate’ from the erstwhile Ordnance Factory Board before procurement from other sources has been removed.
- Provision for 15% growth in work has been introduced in cases of Repair/Refits of ships and Repair/Overhauling of aviation equipment.
- This step will help in reducing downtime and ensuring operational readiness.
- Provisions related to Proprietary Article Certificate (PAC) procurement have been redefined, while maintaining its validity at 2 years.
- Implementation Timelines:
- All Request for Proposals (RFPs) issued after November 1, 2025, will follow DPM 2025.
- RFPs issued up to October 31, 2025, will continue under DPM 2009 (amended).
- If an RFP issued earlier is retracted and reissued on or after November 1, 2025, it will be governed by DPM 2025.
- Manual Structure:
- DPM 2025 has been released in two volumes:
- Volume I: Main procurement procedures (14 chapters total).
- Volume II: Forms, appendices, and Government orders referenced in Volume I.
- Three new chapters added in Volume I:
- Promoting Self-Reliance through Innovation and Indigenisation
- Information and Communication Technology Procurement
- Consultancy and Non-Consultancy Services
- DPM 2025 has been released in two volumes:
- Focus on Aatmanirbharta:
- The new chapter on Promoting Self-Reliance aims to boost indigenous design and development in Defence items.
- This will strengthen Aatmanirbharta (self-reliance) in Defence manufacturing and technology.
- Accessibility:
- The soft copy of DPM 2025 is available on the Ministry of Defence (MoD) website for easy access.
- Launch Ceremony:
- The ceremony was attended by:
- Chief of Defence Staff
- Chiefs of the Naval, Army, and Air Staff
- Defence Secretary
- Secretary (Defence R&D) and Chairman DRDO
- Secretary (Defence Production)
- Secretary (Ex-servicemen Welfare)
- Financial Advisor (Defence Services)
- Vice Chief of the Air Staff
- Controller General of Defence Accounts
- Officer on Special Duty (Department of Ex-servicemen Welfare)
- Other senior officials
- The ceremony was attended by:
DEFENCE PROCUREMENT MANUAL 2025 (Volume II)