ENA Sectors 2025-10-24 17:39:15 <p><span style="font-size:14px"><strong>New Delhi, Oct 24 (KNN)</strong> Defence Minister Rajnath Singh released the Defence Procurement Manual (DPM) 2025 at a function held in South Block, New Delhi, on October 23, 2025. </span></p> <p><span style="font-size:14px">The new manual, effective from November 1, 2025, is expected to facilitate revenue procurement worth approximately Rs 1 lakh crore by the three Services and other establishments under the Ministry of Defence (MoD).</span></p> <p><span style="font-size:14px">Singh highlighted that DPM 2025 will simplify procurement procedures, standardise processes across services, and ensure timely provision of goods and services necessary for operational preparedness. </span></p> <p><span style="font-size:14px">He also noted that the revised framework will create greater opportunities for MSMEs and startups in defence manufacturing and technology while maintaining fairness, transparency, and accountability.</span></p> <p><span style="font-size:14px">Financial Advisor (Defence Services) Dr. Mayank Sharma provided an overview of DPM 2025, emphasising that the manual was developed in close consultation with the armed services and other stakeholders.</span></p> <p><span style="font-size:14px">The Defence Procurement Manual (DPM) 2025 introduces several key features aimed at streamlining defence acquisitions. </span></p> <p><span style="font-size:14px">Liquidated damages (LD) have been relaxed for delayed deliveries, with a maximum of 10 percent applied only in cases of inordinate delay, and for indigenisation, LD is capped at 0.1 percent per week instead of 0.5 percent. </span></p> <p><span style="font-size:14px">The manual provides for assured orders of up to five years or more for items developed by public or private players under indigenisation. </span></p> <p><span style="font-size:14px">Limited tender enquiries are now permissible for procurements up to Rs 50 lakh, with higher thresholds allowed in exceptional cases. </span></p> <p><span style="font-size:14px">The requirement to obtain a No Objection Certificate from the erstwhile Ordnance Factory Board has been removed to simplify approvals. </span></p> <p><span style="font-size:14px">Operational readiness is enhanced through an upfront provision for 15 percent growth in repair and refit of ships, as well as repair and overhaul of aviation equipment, reducing downtime. </span></p> <p><span style="font-size:14px">Additionally, procurement under the Proprietary Article Certificate (PAC) has been redefined while maintaining its original two-year validity.</span></p> <p><span style="font-size:14px">All Request For Proposals (RFPs) issued after November 1, 2025, will follow DPM 2025 provisions, while those issued before October 31, 2025, will continue under DPM 2009 (amended). </span></p> <p><span style="font-size:14px">RFPs reissued on or after November 1, 2025, will adhere to DPM 2025.</span></p> <p><span style="font-size:14px">This revision of the procurement manual is expected to streamline processes, promote indigenous innovation, and enhance efficiency in defence acquisition, benefiting both the armed forces and domestic defence industry stakeholders.</span></p> <p><em><strong><span style="font-size:14px">(KNN Bureau)</span></strong></em></p> 43875 https://knnindia.co.in/news/newsdetails/sectors/dpm-2025-aims-to-simplify-defence-procurement-support-msmes-startups-defence-minister 2025-10-24 17:39:15 knnindia.co.in