New Delhi, Sept 16: India’s Defence Ministry on Sunday released a new procurement framework aimed at streamlining and expediting purchases for the armed forces, with an emphasis on boosting domestic manufacturing and self-reliance.
The Defence Procurement Manual (DPM) 2025, approved by Defence Minister Rajnath Singh, will govern revenue procurements worth about ₹1 trillion ($12 billion) for the current fiscal year. The ministry said the framework would “foster jointness among the three Services” and ensure the timely availability of resources at appropriate costs.
The manual, last updated in 2009, has been revised in consultation with the armed forces and other stakeholders. It aligns procurement processes with updated government rules and places greater emphasis on technology, transparency and accountability.
As part of Prime Minister Narendra Modi’s “Aatmanirbhar Bharat” (self-reliant India) drive, the DPM 2025 introduces a new chapter promoting innovation and indigenisation. The government said the changes would encourage in-house design and development in collaboration with public and private industry and academia.
To ease participation by suppliers, liquidated damages will not be levied during the development phase. After development, penalties have been capped at a minimum of 0.1% and a maximum of 5%, rising to 10% only in cases of inordinate delay. The manual also provides assured guarantees of order quantities to incentivise vendors.
The ministry said the revised rules will empower financial authorities at lower levels, cut down on bureaucratic delays by reducing file movement, and ensure faster payments to suppliers, thereby maintaining high levels of military preparedness.
