Defence Minister Rajnath Singh Approves DPM 2025: Streamlining Revenue Procurement for Self-Reliant Armed Forces

Why in News

Defence Minister Rajnath Singh has given approval to the updated Defence Procurement Manual (DPM) 2025 on September 14, 2025, which replaces the old 2009 version. This step is important now because it helps make the process of buying everyday items like spares and ammunition faster and simpler for the army, navy, and air force. It focuses on making India self-reliant in defence needs, especially when the country is spending about ₹1 lakh crore this year on such purchases, and it supports the government's push for quick decisions and home-grown innovation in a time of modern wars and global supply issues.

Key Points

1. The DPM 2025 covers rules for buying goods and services needed for daily operations of the armed forces, like maintenance and supplies, worth around ₹1 lakh crore this financial year.
2. It adds a new section to encourage making defence items in India by working with private companies, small businesses, start-ups, colleges like IITs and IISc, and young experts.
3. Rules for development contracts are made easier, with no penalty charges during the testing phase, a small 0.1% penalty after that, and a top limit of 5% or 10% for big delays, to help suppliers who try hard but face small setbacks.
4. New makers get sure orders for up to five years, which can be extended another five years in special cases, plus help from the armed forces with technical knowledge and tools.
5. Lower-level officers, called Competent Financial Authorities (CFAs), can now make quick choices on things like extending delivery times or changing bid dates without asking higher-ups, to cut down delays and speed up payments.
6. For special items with few sellers, limited bidding is allowed up to ₹50 lakh, and in rare cases more, while also looking for other options to avoid depending on one supplier.
7. No need anymore for permission from government defence companies before open bidding, so private firms get a fair chance to compete.
8. For fixing advanced ships and planes, 15% of the cost can be paid upfront to reduce waiting time and keep them ready for use.
9. The manual uses technology to make sure everything is fair, clear, and accountable, matching the latest rules from the finance ministry.

Explained

What is the Defence Procurement Manual (DPM)?

The Defence Procurement Manual, or DPM, is a set of rules made by the Ministry of Defence to guide how the armed forces buy things they need for everyday work, like spare parts, ammunition, and maintenance services. This is different from big buys like new weapons or planes, which come under another set of rules called the Defence Acquisition Procedure (DAP). The DPM helps make sure these buys are done in a planned way to keep the forces ready for action without wasting time or money. It started in 2009, and now in 2025, it has been changed to fit today's needs, like faster wars where quick supplies matter a lot.

What is Revenue Procurement and Why is it Important?

Revenue procurement means buying items for the day-to-day running and upkeep of the armed forces, not for new big projects. For example, it includes things like repairing ships or getting extra bullets, which cost about ₹1 lakh crore each year. This is key because without these supplies on time, soldiers cannot stay prepared for threats. In India, with long borders and ongoing issues like those with neighbors, having smooth revenue buys helps keep the army, navy, and air force strong and ready, supporting the country's safety without depending too much on foreign sellers.

What is the Background of Updating the DPM to 2025 Version?

The old DPM from 2009 was made when defence needs were simpler, but now with new tech like drones and fast-changing wars, it needed changes. The update was done after talking to the armed forces, companies, and others involved. It matches new rules from the finance ministry and focuses on India's goal of Aatmanirbhar Bharat, started in 2020, to make more things at home and cut imports. Before this, delays in buys often happened due to too much paperwork, so the new version cuts that to make things quicker.

How Does DPM 2025 Promote Self-Reliance in Defence?

Self-reliance, or Aatmanirbhar Bharat, means India makes its own defence items instead of buying from abroad. The DPM 2025 has a new part just for this, pushing for home-made designs and growth by teaming up with private firms, small businesses, start-ups, and schools like IITs. It gives sure orders for years and no penalties during early testing to encourage new makers. This helps build a strong defence industry in India, which already has over 200 start-ups making things like drones, and aims to raise home-made parts in defence to over 75% in many deals.

What Are the Main Changes for Faster Decisions and Ease of Business?

To speed things up, the manual lets lower officers decide on extensions or payments without waiting for top approvals, cutting file movement. It allows small bids up to ₹50 lakh quickly and pays 15% upfront for big fixes on ships or planes to avoid long waits. It also removes the need for special permissions from government defence firms, giving private companies a fair shot. These changes can cut buy times by 20-30%, helping the forces get what they need fast while boosting private share in defence, now at 15-20% of output.

How Does DPM 2025 Support Jointness Among Armed Forces?

Jointness means the army, navy, and air force working together better, like sharing buys to avoid separate ways. The DPM 2025 pushes this by having common rules for all, which fits with plans for combined commands started in 2022. This saves money and makes the forces stronger as one team, important for India's defence budget where 28% goes to daily costs, especially with tensions on borders.

What Are the Potential Benefits and Challenges of DPM 2025?

Benefits include faster supplies for soldiers, more jobs from home-making (like in over 200 defence start-ups), and reaching $25 billion in defence exports by 2025. It uses online tools for clear deals, reducing wrongs. But challenges might be training officers on new rules or making sure small firms can join without big hurdles. Overall, it strengthens India's defence by mixing speed, home-growth, and fairness.

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