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News: Raksha Mantri Rajnath Singh approved the Defence Procurement Manual (DPM) 2025 to streamline defence revenue procurement, boost Aatmanirbharta, and enhance preparedness through simplified, transparent processes ensuring timely availability of resources.
About Defence Procurement Manual 2025
- The Defence Procurement Manual (DPM) 2025 replaces the 2009 version to align with modern warfare and public procurement norms.
- It regulates revenue procurements valued at around ₹1 lakh crore annually under the Ministry of Defence.
- The manual simplifies processes for operations and sustenance, empowers Competent Financial Authorities (CFAs) for faster decisions, and ensures timely supplier payments.
- It promotes Aatmanirbharta by enabling participation of private players, MSMEs, start-ups, academia, IITs, IISc, and DPSUs in defence innovation and indigenisation.
- Significance
- Ease of Doing Business: Relaxed penalties; maximum Liquidated Damages capped at 5% (10% for major delays).
- Industry Support: Supportive financing, assured orders up to 5–10 years, and technical handholding by Services.
- Innovation Push: Dedicated chapter on R&D and indigenisation; collaboration with academia and industry.
- Flexibility: Limited Tendering allowed up to ₹50 lakh; proprietary items permitted under Propriety Article Certificate.
- Operational Readiness: 15% work growth provision for repair/refit of aerial and naval platforms to reduce downtime.
- Transparency & Fairness: NOC from DPSUs removed; competitive bidding mandated; aligned with Government-to-Government (G2G) procurement norms.
