Raksha Mantri Rajnath Singh released the Defence Procurement Manual (DPM) 2025, effective from November 1, 2025

About Defence Procurement Manual (DPM) 2025

• Purpose: The DPM 2025 governs revenue procurement worth approximately ₹1 lakh crore by the Army, Navy, Air Force, and other Ministry of Defence (MoD) establishments.
• It replaces the earlier DPM 2009 and introduces simplified, transparent, and uniform procedures.
• Objective:
• • Simplify procurement procedures.
  • Promote MSME and start-up participation in defence manufacturing.
  • Enhance transparency, fairness, and accountability in defence procurement.
  • Strengthen India’s Aatmanirbhar Bharat (self-reliance) initiative through indigenisation.

Key Features of DPM 2025

• Simplified and Uniform Procurement Process: 
  • Brings uniformity across all Services and MoD establishments.
  • Designed for ease of implementation with clearly defined financial and procedural frameworks.
• Relaxed Penalty:
  • Liquidated Damages: Maximum penalty capped at 10%, applicable only for inordinate delays.

• Indigenisation Incentives:
  • Penalty reduced to 0.1% per week (compared to 0.5% for other procurements).Provision for up to five years or more for items developed by public or private players under indigenisation programmes.
• Removal of Obsolete Requirements:
  • Eliminates the need for a ‘No Objection Certificate’ from the former Ordnance Factory Board (OFB) for alternative procurements.
  • Simplifies vendor selection and accelerates project execution timelines.
• Operational Flexibility in Maintenance and Overhaul:
  • 15% upfront provision allowed for expansion in ship repair, refits, and aviation equipment overhauls.
  • Reduces downtime and strengthens operational preparedness of defence platforms.
• Updated Proprietary Article Certificate (PAC) System:
  • PAC-related procurement provisions redefined with a validity of two years.
  • Streamlines procurement of proprietary or single-source items.

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