Defence Minister Rajnath Singh approved the Defence Procurement Manual 2025 (DPM 2025) on September 14, replacing the 2009 version. The updated manual manages ₹1 lakh crore annual defence procurement. Key changes include a dedicated innovations chapter promoting collaboration with IITs and IISc, reduction of Liquidated damages to 0.1% post-prototype development, and permission for limited tendering for values up to ₹50 lakh. The manual strengthens India's Atmanirbhar Bharat goals in defence manufacturing.
Defence Procurement Manual 2025 Approved by Rajnath Singh
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Defence Minister Rajnath Singh approved the Defence Procurement Manual 2025 (DPM 2025) on September 14, replacing the 2009 version. The updated manual manages ₹1 lakh crore annual defence procurement. Key changes include a dedicated innovations chapter promoting collaboration with IITs and IISc, reduction of Liquidated damages to 0.1% post-prototype development, and permission for limited tendering for values up to ₹50 lakh. The manual strengthens India's Atmanirbhar Bharat goals in defence manufacturing.
Key facts
- Defence Minister Rajnath Singh approved DPM 2025 on September 14.
- Replaces 2009 Defence Procurement Manual for ₹1 lakh crore annual procurement.
- Dedicated innovations chapter promotes collaboration with IITs and IISc.
- Liquidated damages reduced to 0.1% post-prototype development.
- Limited tendering permitted for values up to ₹50 lakh.
- Strengthens Atmanirbhar Bharat goals in defence manufacturing.
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Which previous version of the Defence Procurement Manual was replaced by DPM 2025?
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The Defence Procurement Manual 2025 was approved by Defence Minister Rajnath Singh on September 14, replacing the 2009 version.
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Frequently asked questions
What is the Defence Procurement Manual 2025 and who approved it?
The Defence Procurement Manual 2025 (DPM 2025) is the updated framework governing India's defence procurement processes. It was approved by Defence Minister Rajnath Singh on September 14, replacing the 2009 version. The manual manages approximately ₹1 lakh crore worth of annual defence procurement.
What is the significance of the innovations chapter in DPM 2025?
DPM 2025 includes a dedicated innovations chapter that promotes collaboration between the defence sector and premier academic institutions like IITs and IISc. This chapter encourages joint research and technology development partnerships to boost indigenous defence innovation under the Atmanirbhar Bharat framework.
What change was made to Liquidity Damages (LD) in DPM 2025?
DPM 2025 reduced Liquidated damages (LD) to 0.1% after the prototype development phase. This reduction encourages domestic defence manufacturers and start-ups to participate in government contracts by lowering the financial risk associated with minor delivery delays during the prototype and development stages.
What is limited tendering and for what value is it now permitted under DPM 2025?
Limited tendering refers to a procurement method where bids are invited only from a pre-selected list of vendors, rather than through open competition. Under DPM 2025, limited tendering is permitted for procurement values up to ₹50 lakh, simplifying the process for smaller defence purchases.
How does DPM 2025 strengthen India's Atmanirbhar Bharat goals in defence?
DPM 2025 strengthens Atmanirbhar Bharat in defence by encouraging indigenous manufacturing through reduced financial penalties, academic-industry collaboration, and streamlined procurement processes. By replacing the 2009 manual, it modernises regulations to favour domestic defence ecosystem development including start-ups, MSMEs, and research institutions.
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