Raksha Mantri Releases Defence Procurement Manual 2025

Defence Minister Rajnath Singh has launched the Defence Procurement Manual (DPM) 2025, set to be effective from November 1, 2025. This manual is crucial for UPSC aspirants as it pertains to GS Paper 2 and 3, focusing on governance, transparency, and indigenisation. Last Updated: 2025-10-24

Key Facts About Defence Procurement Manual 2025

• Effective & Scope: Governs revenue procurement worth approximately Rs 1 lakh crore.
• Relaxed Liquidated Damages (LD): Maximum of 10% for delays; 0.1% per week for indigenisation.
• Assured Orders: Items under indigenisation can secure orders for up to 5 years.
• No NOC Requirement: No longer needs No Objection Certificate for non-Ordnance Factory Board sources.
• Financial Advisor Overview: Developed in consultation with services and stakeholders.
• Limited Tender Inquiries: Allowed for values up to Rs 50 lakh.
• 15% Growth Provision: For Repair/Refits of ships and Aviation equipment.
• Proprietary Article Certificate (PAC): Redefined with initial validity for two years.
• Two Volumes: Volume-I covers main provisions; Volume-II has forms and appendices.
• New Chapters: Focused on self-reliance, ICT procurement, and consultancy services.
• Soft Copy Availability: DPM 2025 is accessible on the MoD website.
• Key Highlights: Aims to simplify procedures and ensure fairness in procurement.
• Operational Preparedness: Supports the Armed Forces in maintaining readiness.
• Indigenisation Encouragement: Promotes indigenous design and development.
• Ceremony Attendees: Included senior military and defence officials.

India's Defence Procurement and Indigenisation

The Defence Procurement Manual 2025 is a significant step towards enhancing India's defence capabilities and self-reliance. It aligns with India's strategic goal of reducing dependency on foreign arms and boosting indigenous production. The manual's emphasis on transparency and accountability is expected to enhance India's standing in global defence rankings, fostering economic growth through the defence sector.

Related Government Schemes/Policies

• Make in India: Encourages manufacturing within India, including the defence sector.
• Atmanirbhar Bharat: Aims for self-reliance in various sectors, including defence.
• Defence Production and Export Promotion Policy (DPEPP) 2020: Focuses on boosting defence exports and domestic production.

UPSC Relevance

• GS Paper 2: Governance, transparency, and accountability in defence procurement.
• GS Paper 3: Indigenisation of technology and development of new technology in defence.
• Prelims Angle: Questions on the key features and objectives of DPM 2025.
• Mains Angle: Analytical themes on India's defence procurement strategy and its impact on national security.
• Essay Paper: Topics on self-reliance and indigenisation in defence.

FAQ Section

• What is the Defence Procurement Manual 2025? The Defence Procurement Manual 2025 outlines procedures for acquiring goods and services for the Armed Forces, focusing on transparency, accountability, and promoting indigenisation.
• Why is the Defence Procurement Manual 2025 important? It is crucial for enhancing operational readiness, ensuring fairness in procurement, and supporting India's strategic goal of self-reliance in defence.
• What are the key features of the Defence Procurement Manual 2025? Key features include relaxed liquidated damages, assured orders for indigenisation, no NOC requirement, and a focus on self-reliance and ICT procurement.