Defence Minister Rajnath Singh approves Defence Procurement Manual 2025

Defence Minister Rajnath Singh Approves New Defence Procurement Manual 2025

Defence Minister Rajnath Singh has given the green light to the Defence Procurement Manual (DPM) 2025. This update aims to make buying processes smoother and faster for the Ministry of Defence, especially to meet the growing needs of the Armed Forces in today’s fast-changing warfare landscape.

The new manual focuses on self-reliance, or Aatmanirbhar Bharat, in defence. It targets revenue procurement under operations and sustenance, which covers everyday needs like supplies and maintenance. By promoting teamwork among the Army, Navy, and Air Force, it ensures quick decisions and keeps military readiness at its peak. This means troops get the right resources on time and at fair prices, as the Ministry of Defence explains.

One big highlight is boosting ease of doing business in defence manufacturing and technology. The manual encourages private companies, MSMEs, startups, and even Defence Public Sector Undertakings (DPSUs) to join hands. It taps into India’s homegrown talent to build a stronger domestic defence market.

The DPM, which guides how the defence services and other MoD organisations buy goods and services, was last updated in 2009. This revision came after talks with the Armed Forces and key stakeholders. For the current financial year, it covers procurements worth around Rs 1 lakh crore. The update aligns with the latest public procurement rules from the Ministry of Finance and uses technology for fair, transparent, and accountable processes.

A fresh chapter on innovation and indigenisation pushes self-reliance further. It supports in-house design and development of defence items and spares, partnering with industries, academia, IITs, IISc, and top private institutions. This way, young innovators can contribute to making India more self-sufficient in defence tech.

To attract more players into the sector, the manual relaxes rules on development contracts. For instance, it skips Liquidity Damages (LD) during the development phase and applies just 0.1% LD after a prototype is ready. The max LD is now capped at 5%, going up to 10% only for major delays. This rewards suppliers who try hard to meet deadlines, even if they’re a bit late.

Suppliers also get assured orders for up to five years, extendable to another five in special cases. The Armed Forces will offer handholding support, like sharing technical know-how and equipment, to help developments succeed.

The DPM 2025 empowers lower-level Competent Financial Authorities (CFAs) to make faster calls. They can now extend delivery periods without escalating to higher-ups, after consulting financial advisors. This cuts file movement, speeds up decisions, and ensures timely payments to vendors.

It strengthens group decision-making, similar to capital asset buys. CFAs can also push back bid opening dates to boost participation, without needing advisor approval up to a limit.

For complex repairs on aircraft and ships, the manual allows up to 15% extra work upfront. This reduces equipment downtime and keeps operations running smoothly.

Special provisions cover niche goods from limited sources. Limited tendering is okay up to Rs 50 lakh, and higher in rare cases. For proprietary items, procurement via certificates is allowed, but with efforts to find alternatives.

Government-to-Government deals for big-ticket buys now have streamlined rules. To ensure a level playing field, the manual drops the need for No Objection Certificates from DPSUs before open bidding. Tenders will go purely on competition.

Overall, the DPM 2025 is a big step towards efficient, innovative, and self-reliant defence procurement in India.

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