Source: BS
Context: Defence Minister released the Defence Procurement Manual (DPM) 2025 in New Delhi. Effective from November 1, 2025, the new manual aims to simplify revenue procurement procedures worth nearly ₹1 lakh crore annually.
About Defence Procurement Manual (DPM) 2025:
What it is?
- The Defence Procurement Manual 2025 is a comprehensive guideline for revenue procurement by the Armed Forces and other MoD establishments, replacing the earlier DPM 2009. It standardises procedures for acquiring goods and services essential for operational preparedness.
Aim:
- To streamline and simplify procurement processes across all defence services.
- To promote ease of doing business and encourage MSMEs and start-ups in defence manufacturing.
- To ensure fairness, accountability, and transparency in procurement operations.
Key Features:
- Ease of Business: Revised procedures to expedite decision-making and minimise bureaucratic delays.
- Relaxed Penalties: Liquidated Damages (LD) capped at 10% for major delays and 0.1% per week for indigenisation projects (earlier 0.5%).
- Long-term Orders: Provision for assured orders up to 5 years and beyond for items developed indigenously.
- No NOC Required: The need for an NOC from the Ordnance Factory Board has been removed, simplifying vendor participation.
- Procurement Thresholds: Limited Tender Enquiry allowed up to ₹50 lakh; beyond that, permissible in exceptional cases.
- Growth Provisions: Upfront 15% growth allowed for ship repairs and aviation overhaul work to ensure platform readiness.
- Structured Format: Divided into two volumes — Volume I (main provisions) and Volume II (forms, appendices, and government orders).
- New Chapters Added:
- Promoting Self-Reliance through Innovation and Indigenisation
- Information & Communication Technology Procurement
- Consultancy and Non-Consultancy Services
Significance:
- Strengthens the Aatmanirbhar Bharat vision by promoting indigenous design and technology.
- Enhances uniformity and transparency across all wings of the Armed Forces.
- Facilitates timely and accountable procurement, boosting defence readiness.
