Defence Minister Rajnath Singh on Thursday unveiled a new manual to simplify and rationalise the revenue procurement process for the armed forces.

The Defence Procurement Manual (DPM) 2025 will come into effect from November 1.

The revenue procurement by the defence services and other organisations under the defence ministry is regulated by the DPM. It was last promulgated 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 defence minister 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, ensuring fairness, transparency and accountability in procurement, he said.

The revised document has been aligned with the updated provisions of the manual for procurement of goods issued by the finance ministry.

Some key provisions in the existing DPM have been altered to expedite decision making and promote ease of doing business, the defence ministry said.

"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.