Released by India’s Defence Minister, the new DPM 2025 is an update to the previous such manual promulgated in 2009.
What is Defence Procurement Manual?
- About: It establishes rules for acquiring goods and services needed for daily operations, maintenance, and readiness of all Defence Services and Ministry of Defence establishments.
- It is distinct from the Defence Acquisition Procedure (DAP), which deals with capital procurements.
- Key Highlights of DPM 2025
- Achieving self-reliance by promoting defence indigenisation and fostering jointness of the Armed Forces under Revenue Head (Operations & Sustenance Segment).
- Streamlining and simplifying the revenue procurement process valuing around Rs 1 lakh crore for the current Financial Year.
Challenges in Defence Indigenisation
- Technological: Reliance on technology transfers and licensed production arrangements due to inadequate domestic R&D, skilled workforce, etc.
- Industry: Low private sector participation. E.g. Hindustan Aeronautics Limited’s (HAL) monopoly.
- Supply Chain Vulnerabilities: Reliance on imported components, subsystems and critical technologies, export controls restrictions, etc. E.g. delay in delivery of jet engines by the US.
- High Cost: Indigenisation and import substitution increase procurement costs for end-users in short-term.
Other initiatives taken for Defence Indigenisation
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