In October 2025, Union Minister Rajnath Singh, Ministry of Defence(MoD), released the Defence Procurement Manual (DPM) 2025 which aims to simplify and rationalize the revenue procurement process for the armed forces, during a function held in South Block, New Delhi (Delhi).
- The new procurement manual effective from November 01 2025 is expected to facilitate the revenue procurement worth around Rs 1 lakh crore by three services and other establishments under the MoD.
Exam Hints:
- What? Release of DPM 2025
- Released by: Union Minister Rajnath Singh, MoD
- Effective From: November 01, 2025
- Replaces: DPM 2009
- Key Reforms:
- Relaxed Liquidity Damages (max 10%)
- Penalty for indigenisation cut to 0.1%/week
- ‘NOC’ from OFB no longer required
- Limited tender enquiry up to Rs.50 lakh
- Upfront 15% growth in MRO work
- DAC Approvals: Rs.79,000 crore
- IA: NAMIS Mk-II, GBMES, HMVs
- IN: LPDs, 30mm NSG, ALWTs, EO/IR Systems, Smart Ammo
- IAF: CLRTS/DS system
- Inauguration :Shaurya Van in Jaisalmer, Rajasthan
Key Dignitaries: The ceremony was attended by Chief of Defence Staff (CDS) Anil Chauhan; Chief of Naval Staff (CoNS) Admiral Dinesh Kumar (DK) Tripathi; Dr. Samir Vankatpati (V.) Kamat, Secretary, Department of Defence (Research & Development, R&D) and Chairman of DRDO; and other senior officials.
About DPM 2025:
Background: DPM 2025 has replaced DPM 2009, which has governed revenue procurement for over the last 10 years.
Overview: DPM 2025 is divided into two volumes i.e. Volume-I and Volume-II. There are 14 chapters in Volume-I which includes 3 new chapters: Promoting Self-reliance through Innovation and Indigenisation, Information and Communication Technology Procurement and Consultancy, and Non-Consultancy Services.
- The introduction of a new chapter i.e. promoting self-reliance aims to foster indigenous design and development of defence items to achieve Aatmanirbharta in Defence manufacturing and technology.
Key Changes in DPM:
Request For Proposal (RFP): The MoD has clarified that RFP issued up to October 31, 2025, will continue to be governed by the provisions of DPM 2009.
- While, RFPs reissued on or after November 01, 2025, will be governed by DPM 2025.
Relaxation in Liquidity Damages (LD): The revised DPM has relaxed LD which is imposed on delayed delivery of stores and services.
- While, the maximum LD has been unchanged at 10% in cases of prolonged delay.
Reducing Penalty Rate: As per new DPM, the penalty rate for projects under indigenisation has been reduced from 0.5% per week to 0.1% per week, as applicable in other cases.
- Also, the manual has introduced provisions for assured orders extending up to 5 years and beyond for items developed by public and private players under indigenisation initiatives.
Limited Tender Enquiry: In order to accelerate decision-making process, the new manual has allowed maximum ‘Limited Tender’ enquiries for procurements up to Rs 50 lakh, and beyond that in exceptional cases for instance: when only one or two firms produce the required items.
Removal of ‘NOC’ Requirement: The revised manual has done away with the condition to obtain ‘No Objection Certificate (NOC)’ from erstwhile Ordnance Factory Board (OFB) before going for procurement from other sources.
Upfront Growth: DPM 2025 has also introduced an upfront provision for 15% growth in work during ship repairs, refits, or aviation equipment overhauls.
- This move aims to boost the Maintenance, Repair, and Operations(MRO) business in the country and ensure enhanced operational readiness of defence platforms.
Redefined Rules Related to PAC: Further, the rules governing procurement on Proprietary Article Certificate (PAC) have been redefined, while maintaining their validity at 2 years.
DAC Approved Rs 79,000 Crore Proposals to Boost Armed Forces Capability
In October 2025, the Defence Acquisition Council (DAC) chaired by Union Minister Rajnath Singh, MoD has approved capital acquisition proposals worth about Rs 79,000 crore for the Indian Army (IA), Indian Navy (IN) and Indian Air Force (IAF), during a meeting held at South Block in New Delhi.
Major Procurement for Armed Forces:
Key Acquisitions for IA: The DAC has accorded Acceptance of Necessity (AoN) for the procurement of: Nag System (Tracked) Mk-II (NAMIS); Ground Based Mobile ELINT System (GBMES) and High Mobility Vehicles (HMVs) with material handling crane.
- NAMIS: This system will bolster the Army’s ability to neutralize enemy combat vehicles and fortifications.
- GBMES: Provides 24/7 electronic intelligence on enemy emitters.
- HMVs with Material Handling Cranes: Enhances logistics support across diverse terrains.
Key Acquisitions for IN: The council has also granted AoN for the procurement of Landing Platform Docks (LPD); 30 millimeter (mm) Naval Surface Gun (NSG); Advanced Light Weight Torpedoes (ALWT); Electro Optical Infra-Red Search and Track System and Smart Ammunition for 76 mm Super Rapid Gun Mount.
- LPDs: Facilitate amphibious operations and joint missions with the Army and Air Force.
- 30mm NSGs: Improve capabilities for low-intensity maritime operations and anti-piracy roles.
- ALWTs: Developed indigenously by DRDO, these torpedoes target conventional, nuclear, and midget submarines.
- Electro-Optical Infra-Red Search and Track Systems: Enhance surveillance and targeting capabilities.
- Smart Ammunition for 76mm Super Rapid Gun Mounts: Upgrade naval artillery systems.
Key Acquisitions for IAF: The AoN was granted for the Collaborative Long Range Target Saturation/Destruction System (CLRTS/DS) and other key proposals.
- CLRTD/DS system: It is capable of autonomous take off, landing, navigation, detection, and payload delivery within mission areas.
Defence Minister Rajnath Singh Inaugurated Shaurya Van in Jaisalemer:
In October 2025, Union Minister Rajnath Singh, MoD inaugurated ‘Shaurya Van’, a unique cacti-cum-botanical garden, in Jaisalmer, Rajasthan, and also visited the 1971 Indo-Pak war museum.
- The newly inaugurated Shaurya Van, a new light-and-sound show in Thar Desert, is dedicated to the bravery of Indian soldiers.
About Ministry of Defence (MoD):
Union Minister- Rajnath Singh (Constituency- Lucknow, Uttar Pradesh, UP)
Minister of State (MoS)- Sanjay Seth(Constituency- Ranchi, Jharkhand)




