Rajnath Singh Launches Defence Procurement Manual 2025 to Boost Self-Reliance and Simplify Defence Acquisitions

In a landmark reform aimed at streamlining defence procurement and promoting self-reliance in defence manufacturing, Raksha Mantri Shri Rajnath Singh released the Defence Procurement Manual (DPM) 2025 at a ceremony held in South Block, New Delhi, on October 23, 2025. The new manual, which will come into effect from November 1, 2025, is expected to facilitate revenue procurements worth approximately ₹1 lakh crore annually by the three Armed Forces and other establishments under the Ministry of Defence (MoD).

A Major Step Towards Simplification and Transparency

The Defence Procurement Manual 2025 replaces the earlier DPM 2009 and represents a comprehensive revision designed to simplify processes, standardise procedures, and enhance transparency, accountability, and efficiency in defence revenue procurement.

Speaking at the launch, Shri Rajnath Singh commended the Ministry of Defence and the Headquarters Integrated Defence Staff (HQ IDS) for their collaborative efforts in revising the manual in consultation with stakeholders across the Services, industry, and government departments.

"The DPM 2025 is a progressive and reform-oriented step that simplifies procurement procedures, promotes fairness and accountability, and ensures timely provisioning of critical goods and services required for operational preparedness. It will also create greater opportunities for MSMEs and startups in the defence sector," the Raksha Mantri said.

He further noted that the DPM 2025 aligns with the Government's Atmanirbhar Bharat Abhiyan and Make in India initiatives, aiming to boost indigenous manufacturing and innovation in defence production.

Key Highlights and Policy Innovations

The Financial Advisor (Defence Services), Dr. Mayank Sharma, provided an overview of the manual, explaining that DPM 2025 was formulated after extensive inter-ministerial consultations to integrate lessons from previous procurement cycles and emerging industry best practices.

Some of the key changes and salient features of the DPM 2025 include:

1. Ease of Doing Business and Faster Decision-Making

• The revised manual introduces simplified workflows and delegation of financial powers to expedite approvals.

• The Limited Tender Enquiry process can now be used for procurements up to ₹50 lakh, with flexibility to extend it beyond this limit in exceptional cases.

• These reforms aim to reduce bureaucratic delays and improve procurement efficiency.

2. Relaxation in Liquidated Damages (LD) Provisions

• The maximum Liquidated Damages (LD) for delayed deliveries will now be capped at 10%, and only in cases of inordinate delay.

• For indigenisation projects, LD has been significantly relaxed to 0.1% per week (as opposed to the earlier 0.5%), encouraging innovation and indigenous product development without fear of excessive penalties.

3. Assured Orders for Indigenous Products

• DPM 2025 introduces a new provision for assured orders up to five years and beyond for items developed by Indian public or private entities under indigenisation schemes.

• This long-term commitment is expected to enhance investor confidence and ensure sustainability for domestic defence manufacturers.

4. Removal of Legacy Bottlenecks

• The requirement of obtaining a 'No Objection Certificate' from the erstwhile Ordnance Factory Board (OFB) before procuring from other sources has been removed.

• This change enhances competitive procurement and ensures timely delivery of critical defence equipment.

5. Enhanced Operational Readiness

• The new manual allows an upfront provision for 15% growth in work in cases of repair/refit of ships and overhaul of aviation equipment, reducing downtime and ensuring readiness of platforms.

6. Redefinition of Proprietary Article Certificate (PAC)

• The PAC-based procurement framework has been redefined to make it more transparent and time-bound while maintaining its validity period of two years.

Promoting Self-Reliance and Indigenous Innovation

One of the most significant aspects of DPM 2025 is the inclusion of three new chapters in Volume I:

1. Promoting Self-Reliance through Innovation and Indigenisation

2. Information and Communication Technology (ICT) Procurement

3. Consultancy and Non-Consultancy Services

The new chapter on Self-Reliance through Innovation and Indigenisation underscores the Government's commitment to achieving Aatmanirbharta (self-reliance) in defence production. It encourages indigenous design, development, and technology adoption by Indian industries, startups, and research institutions.

Volume II of the manual includes appendices, forms, and government orders referenced in Volume I for ease of use. Both volumes have been made available in soft copy on the official MoD website, ensuring easy access for stakeholders and promoting transparency.

Implementation and Transition Plan

All Requests for Proposals (RFPs) issued on or after November 1, 2025, will be governed by DPM 2025.

• RFPs issued on or before October 31, 2025, will continue under the provisions of DPM 2009 (amended up to date).

• RFPs that have been retracted and are to be reissued on or after November 1, 2025, will be governed by the new manual.

This ensures a smooth transition and avoids disruption to ongoing procurement processes.

Inclusive, Transparent, and Accountable Defence Procurement

The DPM 2025 lays strong emphasis on transparency, fairness, and accountability through digital workflows, audit trails, and integrated monitoring systems. These provisions aim to make defence procurement faster, cleaner, and more efficient while aligning with India's Defence Production and Export Promotion Policy (DPEPP) 2020.

"Our objective is to modernise the Armed Forces while empowering Indian industries, startups, and innovators to participate meaningfully in the defence supply chain," Shri Rajnath Singh stated.

Attendees at the Launch Ceremony

The ceremony was attended by the Chief of Defence Staff (CDS), the Chiefs of the Army, Navy, and Air Force, the Defence Secretary, Secretary (Defence Production), Secretary (Defence R&D) and Chairman, DRDO, Secretary (Ex-Servicemen Welfare), Financial Advisor (Defence Services), Vice Chief of Air Staff, Controller General of Defence Accounts, and other senior officials from the Ministry and Armed Forces.

A Milestone for Atmanirbhar Bharat in Defence

The Defence Procurement Manual 2025 marks a pivotal reform in India's defence acquisition framework. By simplifying rules, removing redundant layers, and promoting indigenous innovation, it aims to transform India's defence procurement into a modern, agile, and industry-friendly system.

The manual not only enhances operational readiness but also reinforces India's strategic goal of becoming a global hub for defence manufacturing, driven by transparency, efficiency, and self-reliance.