Rajnath Singh Unveils New Defence Procurement Manual

Rajnath Singh, the minister of defense, released a new guide on Thursday that aims to streamline and rationalize the military's revenue procurement procedure. On November 1, the Defense Procurement Manual (DPM) 2025 will go into force.

The DPM regulates the defense services  and other defense ministry organizations' revenue procurement. The last time it was issued was in 2009.

"Effective from November 1, the new procurement manual will facilitate the revenue procurement amounting to approximately Rs 1 lakh crore by the three services and other establishments under Ministry of Defence (MoD)," an official statement said.

The defense minister expressed optimism that the new handbook will help provide the goods and services that the armed forces need for operational readiness, streamline processes, and bring uniformity in operations.

Also Read: Haveus Aerotech Enters Defence Manufacturing Sector

 According to him, it will also provide MSMEs and start-ups greater chances in the defense manufacturing and technology sector while guaranteeing accountability, openness, and fairness in procurement. The amended provisions of the finance ministry's manual for goods procurement have been incorporated into the new text.

 According to the defense ministry, some important clauses in the current DPM have been changed to speed up decision-making and facilitate business dealings.

"Liquidated damages (LD), levied on delayed delivery of stores and services, have been relaxed and maximum LD to the extent of 10 per cent will be levied only in cases of inordinate delay," it said.

"This provision has further been relaxed in case of indigenisation where only 0.1 per cent LD per week will be levied instead of 0.5 per cent per week as applicable in other cases," the ministry said.