Defence Ministry Introduces Framework to Simplify Revenue Procurement

Quick Summary

• Defense Minister Rajnath Singh has approved the Defence Procurement Manual (DPM) 2025, aimed at streamlining, simplifying, and rationalising revenue procurement for India’s Ministry of Defence.
• The framework is focused on expediting decision-making and ensuring timely availability of resources for military preparedness.
• The DPM 2025 covers principles regulating defence revenue procurements valued around ₹1 lakh crore in the current fiscal year.
• Key features include fostering jointness among defence services, strengthening self-reliance (Aatmanirbharta), introducing provisions for innovation and indigenisation, and enhancing fairness, openness, and accountability in procurement processes.
• A new chapter promotes indigenisation via collaborative development with industries and academia. Development contracts have been made more flexible by easing Liquidity Damages terms during prototypes’ development phase.
• Lower-level financial authorities have been empowered to expedite decision-making while provisions have been outlined to minimize delays in supplier payment processes.

Indian Opinion Analysis

The approval of DPM 2025 represents a significant step forward in modernizing India’s defence procurement system. By incorporating technological advancements and aligning policies with self-reliance goals under Aatmanirbhar Bharat ideals, this manual positions India to increase its capacity for domestically manufactured defence equipment. relaxed contract laws may incentivize innovation without sacrificing accountability. Additionally, facilitating faster resource allocation could strengthen operational efficiency across military divisions.The alignment with updated financial regulations also highlights a move toward increased transparency that could bolster trust between suppliers and the Ministry. Empowering lower-level financial officers underscores practical reforms designed to minimize bureaucratic bottlenecks frequently enough associated with large-scale defense projects. Ultimately, proper execution of DPM 2025 has the potential to enhance India’s capability both economically via indigenous manufacturing partnerships and also strategically through improved readiness.Read More: Link