Defence stocks surged after Defence Minister, Rajnath Singh approved the new defence procurement manual (DPM) 2025, which provides supportive financing options & relaxing unnecessary penalties
The Nifty India Defence index rose 0.51% to 8,086.10. The index jumped 4.92% in the two consecutive trading sessions.Paras Defence and Space Technologies (up 3.05%), Cochin Shipyard (up 2.42%), Cyient DLM (up 2.10%), Astra Microwave Products (up 2.056%), DCX Systems (up 1.61%), Zen Technologies (up 1.24%) and Hindustan Aeronautics Limited (HAL) (up 1.23%) surged.
The DPM 2025 aims to further streamline, simplify, enable & rationalise the revenue procurement process in the Ministry of Defence and cater to the emerging requirements of the Armed Forces in the era of modern warfare.
The DPM lays down the guiding principles and provisions for all revenue procurements in the Ministry valuing around Rs 1 lakh crore for the current financial year.
Provision has been introduced not to levy Liquidity Damages (LD) during development phase. Minimal LD at 0.1% will be levied post development of the prototype. Maximum LD to be levied has been lowered to 5%, and in case of inordinate delays only, maximum LD will be 10%.
The requirement of obtaining no objection certificate from some DPSUs before going for open bidding has been dispensed with and tenders will be awarded purely on competitive basis.
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