What Are the Outcomes of the India-Armenia Defence Working Group Meeting?
Synopsis
Key Takeaways
- India and Armenia are enhancing defence cooperation.
- The Defence Procurement Manual (DPM) 2025 will streamline procurement processes.
- MSMEs and start-ups will receive increased opportunities in defence manufacturing.
- Changes in liquidated damages provisions promote ease of business.
- Long-term orders for indigenous products are encouraged.
Hyderabad, Oct 23 (NationPress) During a recent Joint Working Group Meeting on Defence Cooperation, India and Armenia engaged in discussions regarding their bilateral defence ties, defence industrial collaboration, and various security matters of shared interest, as reported by an official.
The Indian delegation, led by Vishwesh Negi, Joint Secretary (IC), was joined by the Armenian team headed by Levon Ayvazyan, Head of Policy and International Military Cooperation Department, Ministry of Defence of Armenia, according to a post from the Ministry of Defence on X.
Earlier on the same day, Defence Minister Rajnath Singh unveiled the Defence Procurement Manual (DPM) 2025 during an event at South Block, New Delhi.
As per the Ministry of Defence (MoD), the new procurement guidelines, effective from November 1, 2025, are set to streamline revenue procurement, which is anticipated to be around Rs 1 lakh crore for the three Services and other defense entities.
The Defence Minister praised the efforts of the MoD and HQ Integrated Defence Staff in revising the manual, expressing optimism that it will simplify processes, standardize operations, and be instrumental in delivering essential goods and services for the Armed Forces' operational readiness.
“It will also create greater opportunities for MSMEs and start-ups in the realm of defence manufacturing and technology, while ensuring fairness, transparency, and accountability in procurement,” stated the MoD in its press release.
Significantly, several key provisions have been modified to enhance decision-making and facilitate smoother business operations.
“The stipulations for liquidated damages (LD) imposed for late delivery of products and services have been eased, with a maximum LD of 10 percent applicable only in cases of excessive delay. This provision has been further relaxed for indigenisation, where only a 0.1 percent LD per week will apply instead of the usual 0.5 percent per week,” the MoD added.
Moreover, there are provisions for guaranteed orders extending up to five years and beyond for items developed by public and private entities under indigenisation.