India Approves DPM 2025 for Defence Procurement
The Defence Ministry has cleared the Defence Procurement Manual (DPM) 2025, aimed at streamlining and simplifying revenue procurement for the armed forces. Defence Minister Rajnath Singh approved the framework, which will govern procurements worth nearly ₹1 lakh crore this year.
Key Features of DPM 2025
The manual introduces measures to improve efficiency and transparency in defence purchases. It places strong emphasis on Atmanirbharta (self-reliance) by encouraging innovation and collaboration with industry, academia, and research bodies such as IITs and IISc.
Changes in Contract Rules
The DPM relaxes rules around liquidated damages (LD). No LD will be levied during the development phase, while only a 0.1% LD will apply after prototype development. The standard cap is fixed at 5%, rising to 10% only for major delays.
Benefits for Industry
The framework is designed to ease processes for MSMEs, startups, and private firms. It simplifies approvals, accelerates payments, and promotes domestic production of spares and equipment. This is expected to increase industry participation in defence supply chains.
Goals and Outcomes
The new framework seeks to ensure timely availability of resources for the Army, Navy, and Air Force, while promoting jointness and readiness. It also aims to cut procurement delays, provide predictability to suppliers, and strengthen India’s defence manufacturing base.
