NewKerala.com

Defence Procurement Manual 2025: Rajnath Singh Unveils Rs 1 Lakh Crore Reform

Defence Minister Rajnath Singh has launched the new Defence Procurement Manual 2025 in New Delhi. The manual will govern all defence acquisitions worth approximately Rs 1 lakh crore starting November 1, 2025. Key changes include relaxed penalty clauses for delayed deliveries and special incentives for indigenous manufacturing. The reforms aim to boost MSME participation while ensuring transparency in defence procurement processes.

Key Points: Rajnath Singh Releases Defence Procurement Manual 2025

  • Manual simplifies procurement procedures for armed forces operational needs
  • Relaxes liquidated damages to 0.1% for indigenous defence projects
  • Increases limited tender enquiry threshold to Rs 50 lakh for faster processing
  • Provides assured orders up to five years for indigenous item developers
2 min read

Rajnath Singh releases Defence Procurement Manual 2025

New defence procurement manual simplifies procedures, promotes MSME participation, and facilitates Rs 1 lakh crore in military acquisitions starting November 2025.

"It will also provide more opportunities to MSMEs and start-ups in the field of defence manufacturing - Ministry of Defence"

New Delhi, Oct 23

Defence Minister Rajnath Singh on Thursday released the Defence Procurement Manual (DPM) 2025 at a function in South Block, New Delhi.

According to the Ministry of Defence (MoD), effective from November 1, 2025, the new procurement manual will facilitate the revenue procurement amounting to approximately Rs 1 lakh crore by the three Services and other establishments under the Ministry of Defence.

Appreciating the efforts of MoD and HQ Integrated Defence Staff for the revision of the manual, the Defence Minister expressed confidence that the new manual will simplify the procedures, bring uniformity in functioning and be helpful in providing goods and services required by the Armed Forces for operational preparedness.

“It will also provide more opportunities to MSMEs and start-ups in the field of defence manufacturing and technology, duly ensuring fairness, transparency and accountability in procurement,” the MoD said in its press release.

Notably, some key provisions have been altered to expedite decision-making and promote ease of doing business.

“Liquidated damages (LD), which are levied on delayed delivery of stores and services, have been relaxed, and maximum LD to the extent of 10 per cent will be levied only in cases of inordinate delay. This provision has further been relaxed in case of indigenisation, where only 0.1 per cent LD per week will be levied instead of 0.5 per cent per week as applicable in other cases,” the MoD said.

In addition, there are provisions for assured orders ranging up to five years and beyond for the items developed by the public/private players under indigenisation.

“As per the revised provisions, Limited Tender enquiry can be resorted to for a value up to Rs 50 lakh and beyond that in exceptional cases,” it highlighted.

“All Request For Proposals (RFPs), to be issued after November 01, 2025, will be governed by the provisions of DPM 2025. All cases, where RFP has already been issued/will be issued up to October 31, 2025, will continue to be governed by the provisions of DPM 2009, amended up to date,” it added.

The ceremony was attended by CDS Anil Chauhan, Army Chief General Upendra Dwivedi, Navy Chief Admiral Dinesh Kumar Tripathi, DRDO chairman Samir Kamat and other key officials.

- IANS

Share this article:

Reader Comments

P
Priya S
Great move for MSMEs and startups! The 5-year assured orders provision will give them the stability they need to invest in R&D. Hope this translates to more indigenous defence equipment.
R
Rohit P
While the intentions are good, I hope there's proper monitoring mechanism to ensure transparency. Defence procurement has been problematic in the past. Implementation is key! 🤞
S
Sarah B
The focus on indigenization is commendable. Reducing LD from 0.5% to 0.1% for indigenous products shows the government is serious about supporting local manufacturing. Good step!
V
Vikram M
Rs 1 lakh crore procurement! This will boost our defence industry significantly. Hope our armed forces get the best equipment to protect our borders. Jai Hind! 🚀
M
Michael C
The provision for limited tender enquiry up to Rs 50 lakh will speed up small procurement processes. This ease of doing business approach is what our defence sector needed.
K
Kavya N
As someone working in defence manufacturing, these changes are very encouraging. The reduced penalties and longer contracts will help us plan better and deliver quality products.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50