DAC clears proposals, worth about Rs 79,000 crore, to enhance the capability of the Armed Forces

The Defence Acquisition Council, under the chairmanship of Raksha Mantri  Rajnath Singh, approved various proposals of the Services amounting to a total of about Rs 79,000 crore, during a meeting in South Block, New Delhi on October 23, 2025. For the Indian Army, Acceptance of Necessity (AoN) was accorded for the procurement of Nag Missile System (Tracked) Mk-II (NAMIS), Ground Based Mobile ELINT System (GBMES) and High Mobility Vehicles (HMVs) with Material Handling Crane. The procurement of NAMIS (Tracked) will enhance the Indian Army’s capability of neutralising enemy’s combat vehicles, bunkers & other field fortifications, whereas GBMES will provide round-the-clock Electronic Intelligence of enemy emitters. The induction of HMVs will significantly improve logistic support to the forces in diverse geographical terrains.

For the Indian Navy, AoN was granted for the procurement of Landing Platform Docks (LPD), 30mm Naval Surface Gun (NSG), Advanced Light Weight Torpedoes (ALWT), Electro Optical Infra-Red Search and Track System and Smart Ammunition for 76mm Super Rapid Gun Mount. The procurement of LPDs will help the Indian Navy to undertake amphibious operations along with Indian Army and Indian Air Force. The integrated sea capability provided by LPD will also help the Indian Navy to undertake peacekeeping operations, Humanitarian Assistance and Disaster Relief etc. The induction of ALWT, which is indigenously developed by Naval Science & Technological Laboratory, DRDO is capable of targeting conventional, nuclear and midget submarines. The procurement of 30mm NSG will enhance the capability of Indian Navy and Indian Coast Guard to conduct Low Intensity Maritime Operations & anti-piracy roles.

For the Indian Air Force, AoN was accorded for Collaborative Long Range Target Saturation/Destruction System (CLRTS/DS) and other proposals. The CLRTS/DS has the capability of autonomous take-off, landing, navigating, detecting and delivering payload in the mission area.

Raksha Mantri  Rajnath Singh released the Defence Procurement Manual (DPM) 2025 at a function in South Block, New Delhi on October 23, 2025. Effective from November 01, 2025, the new procurement manual will facilitate the revenue procurement amounting to approx Rs 1 (one) lakh crore by the three Services and other establishments under Ministry of Defence (MoD).

Appreciating the efforts of MoD and HQ Integrated Defence Staff for the revision of the manual, Raksha Mantri expressed confidence that the new manual will simplify the procedures, bring uniformity in functioning and will be helpful in providing goods and services required by the Armed Forces for operational preparedness. It will also provide more opportunities to MSMEs and start-ups in the field of defence manufacturing and technology duly ensuring fairness, transparency and accountability in procurement.

Financial Advisor (Defence Services) Dr Mayank Sharma gave a brief overview of DPM 2025 and highlighted the way the manual has been prepared in close consultation with the services and other stakeholders.

Salient features

Some key provisions have been altered to expedite decision making and promote ease of doing business.  Liquidated damages (LD) which is levied on delayed delivery of stores and services, has been relaxed and maximum LD to the extent of 10% will be levied only in cases of inordinate delay.  This provision has further been relaxed in case of indigenisation where only 0.1% LD per week will be levied instead of 0.5% per week as applicable in other cases.

In addition, there are provisions for assured order ranging upto five years and beyond for the items developed by the public/private players under indigenisation. As per the revised provisions, Limited Tender enquiry can be resorted to for value upto Rs 50 lakh and beyond that in exceptional cases.

In this revised manual, condition to obtain ‘No objection certificate’ from erstwhile Ordnance Factory Board before going for procurement from other sources, has been dispensed with. The revised manual enables to make upfront provision for 15% Growth of work in case of Repair/Refits of ships & Repair/Overhauling of Aviation equipment.  This will help in lowering downtime and ensuring operational readiness of the platforms. The provisions related to procurement on PAC basis (Proprietary Article Certificate) has been redefined while maintaining its initial validity for 2 years.

All Request For Proposals (RFPs), to be issued after November 01, 2025, will be governed by the provisions of DPM 2025. All cases, where RFP has already been issued/will be issued upto October 31, 2025, will continue to be governed by the provisions of DPM 2009, amended upto date. In cases, where RFP has been issued in the past but that has been retracted/to be retracted and has to be reissued on or after November 01, 2025, will be governed by the provisions of DPM 2025.

For the convenience of the users, DPM 2025 has been prepared in two volumes. Main provisions of the procurement procedures are incorporated in Volume -I. Volume-II contains all those forms, appendices and Govt. orders which have been referred to in Volume -I. There are fourteen chapters in Volume-I, which include three new chapters namely- Promoting Self-reliance through Innovation and Indigenisation, Information and Communication Technology Procurement and Consultancy and Non-Consultancy Services. The new chapter on promoting self-reliance will foster indigenous design and development of Defence items to achieve the goal of Aatmanirbharta in Defence manufacturing and technology. The soft copy of the DPM 2025 has been uploaded on MoD website for easy access.

The ceremony was attended by Chief of Defence Staff, Chief of the Naval Staff, Chief of the Army Staff, Defence Secretary, Secretary Department of Defence (R&D) and Chairman DRDO, Secretary (Defence Production), Secretary (Ex-servicemen Welfare), Financial Advisor (Defence Services), Vice Chief of the Air Staff, Controller General of Defence Accounts, Officer on Special Duty, Department of Ex-servicemen Welfare and other senior officials