The Defence Minister of India has approved the Defence Procurement Manual 2025 (“DPM”), replacing the earlier 2009 version. The DPM streamlines and accelerates procurement, ensuring timely support and self-reliance of the Armed Forces.  This will ensure timely availability of requisite resources to the Armed Forces and at appropriate cost.

The DPM introduces a dedicated chapter on innovation and indigenisation in line with “Aatmanirbhar Bharat” vision, encouraging active participation of industry, start-ups, academia, and Defence Public Sector Undertakings (“DPSUs”) in defence R&D, with relaxations such as exemption from liquidated damages (“LD”) during prototype development, capped LD at 5% for delays, assured orders up to five years (extendable to ten in special cases), and technical support from the Services to aid successful development.

The DPM empowers Competent Financial Authorities (“CFAs”) at field and lower formations, expediting decision-making, avoiding/reducing file movements, and ensuring timely payments. CFAs can now extend delivery periods irrespective of delay quantum, in consultation with their financial advisors, and extend bid opening dates within limits to enhance participation. Collegiate decision-making has also been strengthened in line with acquisition of capital assets.

A 15% growth provision has been introduced for repair and maintenance of aerial and naval platforms to reduce downtime. Limited tendering up to ₹50 lakh is permitted for specialised goods, with proprietary procurement allowed on certificate basis. The DPM streamlines Government-to-Government procurements, removes the need for DPSU NOCs, and ensures competitive bidding. Overall, DPM marks a shift towards faster, transparent, and industry-friendly procurement, boosting domestic defence manufacturing