What Changes Does the Defence Procurement Manual 2025 Bring?
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Synopsis
The release of the Defence Procurement Manual 2025 marks a significant step towards modernizing defense procurement processes in India. With provisions aimed at enhancing operational efficiency and fostering opportunities for MSMEs, this manual is poised to reshape the defense landscape in the country.
Key Takeaways
- Defence Procurement Manual 2025 aims to streamline procurement processes.
- Effective from November 1, 2025.
- Opportunities for MSMEs and start-ups in defense.
- Relaxation of liquidated damages for delayed deliveries.
- Assured orders for items developed in indigenisation.
New Delhi, Oct 23 (NationPress) On Thursday, Defence Minister Rajnath Singh unveiled the Defence Procurement Manual (DPM) 2025 during an event held in South Block, New Delhi.
The Ministry of Defence (MoD) stated that this new manual, effective from November 1, 2025, aims to streamline revenue procurement which is estimated to reach around Rs 1 lakh crore for the three Services and other establishments under the MoD.
Commending the contributions of the MoD and HQ Integrated Defence Staff in revising the manual, the Defence Minister expressed optimism that the new guidelines will simplify procedures, establish uniformity in operations, and aid in the supply of necessary goods and services for the Armed Forces' operational readiness.
As noted in the MoD's press release, the manual will also open up more opportunities for MSMEs and start-ups in defence manufacturing and technology, while ensuring fairness, transparency, and accountability in procurement processes.
Importantly, key provisions have been modified to hasten decision-making and enhance the ease of doing business.
The MoD highlighted that liquidated damages (LD), which are imposed on late deliveries of supplies and services, have been eased, allowing a maximum LD of 10 percent only in cases of significant delays. For indigenisation efforts, the LD will be set at just 0.1 percent per week, compared to the 0.5 percent applicable in other scenarios.
Additionally, provisions for assured orders extending up to five years and beyond for items developed by public/private players under indigenisation have been introduced.
“According to the updated guidelines, Limited Tender enquiries can be made for values up to Rs 50 lakh, with exceptions for higher amounts,” it stated.
“All Request For Proposals (RFPs) issued post November 01, 2025, will adhere to the DPM 2025 guidelines. In contrast, cases where RFPs have already been issued or will be released up to October 31, 2025, will remain under the DPM 2009 provisions, as amended,” it added.
The ceremony witnessed the presence of CDS Anil Chauhan, Army Chief General Upendra Dwivedi, Navy Chief Admiral Dinesh Kumar Tripathi, DRDO chairman Samir Kamat, and various other senior officials.
Point of View
It's vital to recognize that the Defence Procurement Manual 2025 represents a progressive shift in India's defense policies. By simplifying procurement and fostering innovation among smaller enterprises, the government is not only enhancing operational capabilities but also encouraging a more competitive defense manufacturing ecosystem. This aligns with national interests and strengthens our defense infrastructure.
NationPress
23/10/2025
Frequently Asked Questions
When will the Defence Procurement Manual 2025 take effect?
The Defence Procurement Manual 2025 will come into effect on November 1, 2025.
What are the key benefits of the new manual?
The manual aims to simplify procurement procedures, enhance operational readiness, and provide greater opportunities for MSMEs and start-ups.
Are there any changes to liquidated damages in the new manual?
Yes, the new manual relaxes liquidated damages, capping them at 10 percent for significant delays and 0.1 percent per week for indigenisation efforts.
How long are assured orders for under the new provisions?
Assured orders can extend up to five years and beyond for items developed under indigenisation.
What happens to RFPs issued before November 1, 2025?
RFPs issued before this date will continue to be governed by the provisions of DPM 2009.
