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New Delhi, Oct 23 (IANS) Defense Minister Rajnath Singh on Thursday released the Defense Procurement Manual (DPM) 2025 at a function in South Block in New Delhi.
According to the Ministry of Defense (MoD), effective from November 1, 2025, the new procurement rules will facilitate revenue procurement worth about Rs 1 lakh crore by the three services and other establishments under the Defense Ministry.
Appreciating the efforts of the Ministry of Defense and Headquarters Integrated Defense Staff for the revision of the manual, the Defense Minister expressed confidence that the new manual will simplify procedures, bring uniformity in functioning and be helpful in providing goods and services required by the Armed Forces for operational preparedness.
“This will provide more opportunities to MSMEs and start-ups in the field of defense manufacturing and technology, thereby ensuring fairness, transparency and accountability in procurement,” the Defense Ministry said in its press release.
Notably, 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 stores and services have been relaxed and a maximum of 10 per cent LD will be levied only in cases of extreme delay. This provision has been further relaxed in case of indigenisation, where only 0.1 per cent LD will be levied instead of 0.5 per cent per week applicable in other cases,” the Defense Ministry said.
Additionally, there are provisions for assured orders for five years and above for items developed by public/private players under indigenization.
As per the amended provisions, limited tender inquiries for values up to and above Rs 50 lakh can be resorted to in exceptional cases.
“All Request for Proposal (RFP) to be issued after November 01, 2025, will be governed by the provisions of DPM 2025. All cases, where RFP has already been issued/will be issued by October 31, 2025, will continue to be governed by the provisions of DPM 2009 as amended till date.”
CDS Anil Chauhan, Army Chief General Upendra Dwivedi, Navy Chief Admiral Dinesh Kumar Tripathi, DRDO Chairman Sameer Kamat and other key officials were present at the ceremony.
–IANS
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