Union Defence Ministry released Defence Procurement Manual (DPM) 2025 in New Delhi. The new manual serves as a comprehensive guideline for revenue procurement by the Armed Forces and other establishments under the Ministry of Defence (MoD). It replaces the earlier DPM 2009 and aims to simplify, streamline, and standardize procurement procedures, ensuring fairness, transparency, and accountability.
The DPM 2025 will facilitate revenue procurement worth approximately ₹1 lakh crore annually by the three Services and other MoD organizations.
Objective of DPM 2025
- To streamline and simplify the procurement process across all defence services.
- To promote Ease of Doing Business and encourage MSMEs and start-ups in defence manufacturing.
- To strengthen transparency, accountability, and uniformity in defence purchases.
- To support the Aatmanirbhar Bharat initiative by promoting indigenous defence production and innovation.
Key Features of DPM 2025
Ease of Doing Business
- Simplified procedures to ensure faster procurement and decision-making.
- Minimized bureaucratic delays through standardized formats and digital documentation.
Relaxed Penalty Provisions
- Liquidated Damages (LD) capped at 10% for inordinate delays (earlier higher).
- For indigenisation projects, LD capped at 0.1% per week instead of 0.5%.
- This flexibility encourages domestic innovation without punitive financial burdens.
Long-Term Procurement Orders
- Allows assured orders up to 5 years and beyond for indigenously developed products.
- Supports long-term investment planning and manufacturing stability for Indian defence industries.
Simplified Vendor Rules
- No NOC required from the erstwhile Ordnance Factory Board for alternate sourcing.
- Enhances competition and broadens vendor participation.
Growth & Operational Provisions
- Provision for 15% upfront growth in repair/refit work of ships and aircraft overhaul- ensuring operational readiness.
Tender and RFP Guidelines
- Limited Tender Enquiry allowed up to ₹50 lakh; permissible beyond that only in exceptional cases.
- All RFPs issued after November 1, 2025 will follow DPM 2025 norms.
- Old RFPs (issued up to October 31, 2025) will remain under DPM 2009.
Structure of DPM 2025
- Two Volumes:
- Volume I: Main procurement procedures.
- Volume II: Forms, appendices, and Government orders.
- Soft copy available on the MoD website for ease of access.
Newly Added Chapters
- Promoting Self-Reliance through Innovation and Indigenisation
- Information & Communication Technology Procurement
- Consultancy and Non-Consultancy Services
These chapters address modern defence needs, emphasize technological advancement, and align with Aatmanirbhar Bharat goals.
Significance
- Reinforces Aatmanirbhar Bharat and Make in India initiatives.
- Empowers MSMEs and start-ups to enter the defence ecosystem.
- Brings uniformity, transparency, and faster execution in procurement.
- Enhances operational efficiency of Armed Forces through quick material and service availability.
- Reduces dependency on foreign suppliers, boosting self-reliance in defence manufacturing.
Related Defence Indigenisation Initiatives
| Initiative | Year / Details | Objective |
| Defence Acquisition Procedure (DAP) | 2020 | Governs capital procurements (equipment, aircraft, ships, etc.) unlike DPM which covers revenue procurement. |
| Innovations for Defence Excellence (iDEX) | 2018 | Promotes start-ups & MSMEs for defence innovation and R&D. |
| SRIJAN Portal | 2020 | Lists defence import items for indigenisation by Indian industry. |
| FDI Liberalisation | Up to 74% under automatic route | To attract foreign investment in defence manufacturing. |
| Sudarshan Chakra Mission | Recent Initiative | Aims to integrate research, development & production within India. |
Challenges in Defence Indigenisation
Technological Constraints:
- Heavy reliance on foreign technology transfers due to limited domestic R&D.
Industry Limitations:
- Low private sector participation; dominance of PSUs like HAL and BEL.
Supply Chain Vulnerabilities:
- Dependence on imported components; delays due to export restrictions.
High Cost of Indigenisation:
- Short-term cost escalation in developing indigenous systems.
Key Facts
| Topic | Fact / Static Information |
| Full Form of DPM | Defence Procurement Manual |
| First Introduced | 2006 (updated in 2009, now replaced by DPM 2025) |
| Effective From | 1st November 2025 |
| Governing Body | Ministry of Defence, Government of India |
| Type of Procurement | Revenue Procurement (goods, maintenance, services) |
| Difference Between DPM & DAP | DPM → Revenue procurement; DAP → Capital acquisitions |
| Defence Acquisition Procedure (DAP) | Introduced in 2020, revised in 2023 |
| Ministry of Defence HQ | South Block, New Delhi |
| Key Defence PSUs | HAL, BEL, BEML, Mazagon Dock Shipbuilders, GRSE |
| India’s Defence Budget FY2025–26 | Around ₹6.2 lakh crore |
| India’s Defence Minister (2025) | Rajnath Singh |
| Defence Secretary (2025) | Rajesh Kumar Singh |
| FDI Limit in Defence | 74% (automatic route), up to 100% (government route) |
| Apex Defence Procurement Agency | Defence Acquisition Council (DAC), chaired by Defence Minister |
| Make in India in Defence Launch Year | 2014 |
| Major Indigenisation Schemes | iDEX, SRIJAN, DPEPP (Defence Production and Export Promotion Policy) |
| India’s Major Defence Exhibitions | DefExpo, Aero India |
| Key Defence Corridor States | Tamil Nadu & Uttar Pradesh |