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Union Defense Minister Rajnath Singh released the Defense Procurement Manual (DPM) 2025 at a function in South Block in New Delhi on Thursday (October 23). Effective from November 1, 2025, the new manual will facilitate revenue procurement of approx ₹1 lakh crore by the three services and other establishments under the Ministry of Defense (MoD).
Rajnath Singh appreciated the efforts of the Defense Ministry and Headquarters Integrated Defense Staff in revising the manual, saying that DPM 2025 will simplify the processes, bring uniformity in functioning and help in providing goods and services required by the armed forces for operational preparedness.
This manual is also expected to create more opportunities for MSMEs and start-ups in defense manufacturing and technology by ensuring fairness, transparency and accountability in procurement.
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Financial Advisor (Defence Services) Dr Mayank Sharma said that the manual has been prepared in intensive consultation with the services and other stakeholders. Some key provisions have been changed to speed up decision making and promote ease of doing business.
Liquidated damages (LD) levied on delayed delivery of shops and services have been relaxed, with a maximum of 10% applied only in cases of excessive delay, and for indigenization, levied at only 0.1% per week instead of 0.5% per week.
The manual allows assured orders for goods developed under indigenization for a period of five years and above. Can be used for limited tender inquiries for values up to 50 lakhs and even more in exceptional cases. The condition of obtaining ‘No Objection Certificate’ from the erstwhile Ordnance Factory Board before procurement from other sources has been removed.
Also read: Defense Ministry starts review of acquisition rules for faster modernization, self-reliance
Advance provision for 15% increase in work in ship repairs/refits and aviation equipment repair/overhauling has been included to minimize downtime and ensure operational readiness. The provisions related to procurement on the basis of Proprietary Commodity Certificate (PAC) have been redefined by maintaining the initial validity for two years.
All RFPs issued after 01 November 2025 will be governed by DPM 2025, while cases issued till 31 October 2025 will continue to be governed under DPM 2009. Withdrawn RFPs re-issued on or after 01 November 2025 will follow DPM 2025.
DPM 2025 has been prepared in two sections. Volume I covers the core procurement processes in fourteen chapters, including three new chapters on innovation and indigenization, information and communication technology procurement, and promoting self-reliance through consultancy and non-consultancy services. Volume II contains the forms, appendices and government orders referred to in Volume I.
The new chapter on promoting self-reliance aims to promote indigenous design and development of defense items to achieve self-reliance in defense manufacturing and technology. The soft copy of DPM 2025 has been uploaded on the website of the Ministry of Defense for easy access.
Also read: Defense Ministry starts review of acquisition rules for faster modernization, self-reliance