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India Releases Defence Procurement Manual 2025 to Speed Purchases and Boost Indigenisation

New rules shift risk terms, assure multi-year orders, expand MSME access.

Overview

  • Effective November 1, 2025, all RFPs issued thereafter will follow DPM 2025, while earlier cases remain under the amended 2009 manual, covering about Rs 1 lakh crore in annual revenue procurement.
  • Liquidated damages are eased, with the 10% cap applied only for inordinate delays and a 0.1% per week rate for indigenisation projects.
  • The manual provides assured orders for indigenised items for up to five years and beyond to support long-term production.
  • Limited Tender Enquiry is permitted up to Rs 50 lakh, with higher values allowed only in exceptional cases to promote competition.
  • DPM 2025 is issued in two volumes with new chapters on innovation and indigenisation, ICT procurement, and consultancy, and the soft copy is available on the MoD website.