SF Prep Notes

Rajnath Singh approves Defence Procurement Manual 2025

Defence Minister Rajnath Singh approved the Defence Procurement Manual 2025 on 14 September 2025 to simplify revenue procurement for the armed forces, replacing the manual last promulgated in 2009.

Summary

Defence Minister Rajnath Singh approved the Defence Procurement Manual (DPM) 2025 on 14 September 2025 to streamline and simplify revenue procurement in the Ministry of Defence. The DPM governs revenue procurement of goods and services by the Defence Services, valued at around ₹1 lakh crore for the current financial year, and was last promulgated in 2009. The new manual removes liquidated damages (LD) during the development phase of contracts, levies a minimal LD of 0.1% after a prototype is developed, and lowers the maximum LD to 5%, or 10% only for inordinate delays. It provides for assured orders of up to five years, extendable by another five years in special circumstances. The requirement to obtain a No Objection Certificate from some defence PSUs before open bidding has been dropped, and Competent Financial Authorities at field level get more powers.

Key facts

Approved
14 Sep 2025 by Defence Minister Rajnath Singh
Scope
Revenue procurement, ~₹1 lakh crore in current FY
Previous DPM
2009
Liquidated damages
None in development phase; 0.1% post-prototype; max 5% (10% for inordinate delay)
Assured orders
Up to 5 years, plus up to 5 more in special cases
Level playing field
No NOC from DPSUs needed before open bidding

Practice MCQs 4 questions

Q1

The Defence Procurement Manual 2025, approved on 14 September 2025, replaces a manual that was last promulgated in which year?

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Correct answer: B — 2009

The DPM, which regulates revenue procurement by the Defence Services, was last promulgated in 2009; the revised DPM 2025 was approved by Defence Minister Rajnath Singh.

Q2 Advanced

The Defence Procurement Manual 2025 primarily governs which type of procurement by the Ministry of Defence?

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Correct answer: D — Revenue procurement of goods and services

The DPM lays down principles for all revenue procurements in the Ministry, valued at around ₹1 lakh crore in the current financial year.

Q3 Advanced

Consider the following statements about liquidated damages (LD) under the Defence Procurement Manual 2025: 1. No LD will be levied during the development phase of a contract. 2. The maximum LD has been lowered to 5%, rising to 10% only in cases of inordinate delay. Which of the above is/are correct?

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Correct answer: C — Both 1 and 2

Both are correct: DPM 2025 introduces no LD during the development phase and a minimal 0.1% LD after the prototype is developed; maximum LD is lowered to 5%, and only for inordinate delays can it reach 10%.

Q4 Advanced

Under DPM 2025, for how long can the Ministry of Defence give assured orders (in terms of quantity) to suppliers who develop items?

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Correct answer: A — Up to five years, extendable by up to five more years in special circumstances

DPM 2025 provides an assured guarantee of orders in terms of quantity for up to five years and, in special circumstances, up to another five years.

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