UPSC Practice Questions: Defence Procurement Manual (DPM) 2025

 

UPSC Practice Questions: Defence Procurement Manual (DPM) 2025

1. The Defence Procurement Manual (DPM) 2025 primarily governs which type of defence acquisitions?

(a) Capital acquisitions for new weapon systems

(b) Revenue procurement for goods and services

(c) Land acquisition for defence infrastructure

(d) International defence cooperation agreements

Answer: (b) Revenue procurement for goods and services

Explanation:

• DPM 2025 specifically deals with revenue procurement, which includes maintenance, spares, repairs, and other operational requirements of the armed forces.

• Capital acquisitions (like warships, aircraft) are governed by the separate Defence Acquisition Procedure (DAP).

• The text explicitly mentions it will facilitate "revenue procurement amounting to approx Rs 1 lakh crore."

2. Consider the following statements about DPM 2025:

1. It introduces three new chapters including on 'Promoting Self-reliance through Innovation and Indigenisation'

2. It mandates obtaining NOC from Ordnance Factory Board for all private procurements

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer: (a) 1 only

Explanation:

• Statement 1 is correct as DPM 2025 includes three new chapters as mentioned in the text.

• Statement 2 is incorrect because DPM 2025 has dispensed with the requirement of obtaining NOC from the erstwhile Ordnance Factory Board.

3. What is the maximum Liquidated Damages (LD) percentage prescribed in DPM 2025 for cases of inordinate delay?

(a) 5%

(b) 10%

(c) 15%

(d) 20%

Answer: (b) 10%

Explanation:

• The text clearly states that "maximum LD to the extent of 10% will be levied only in cases of inordinate delay."

• For indigenous projects, it's further relaxed to 0.1% per week instead of 0.5% for others.

4. The provision for '15% Growth of work' upfront in DPM 2025 is specifically meant for:

(a) Construction of new military bases

(b) Research and Development projects

(c) Repair/Refits of ships and aviation equipment

(d) Manufacturing of new combat vehicles

Answer: (c) Repair/Refits of ships and aviation equipment

Explanation:

• This provision addresses unforeseen complexities in repair and overhaul work.

• It aims to reduce downtime and ensure operational readiness of platforms.

5. DPM 2025 provides assured orders for how many years for indigenously developed items?

(a) 3 years

(b) 5 years and beyond

(c) 7 years

(d) 10 years

Answer: (b) 5 years and beyond

Explanation:

• The text mentions "assured order ranging upto five years and beyond for the items developed by public/private players under indigenisation."

• This provides demand certainty to domestic manufacturers.

6. From which date will DPM 2025 become effective for all new RFPs?

(a) October 23, 2025

(b) November 01, 2025

(c) January 01, 2026

(d) April 01, 2026

Answer: (b) November 01, 2025

Explanation:

• The manual is explicitly stated to be "Effective from November 01, 2025."

• All RFPs issued after this date will be governed by DPM 2025.

7. The revised manual allows Limited Tender Enquiry for procurements up to:

(a) Rs 25 lakh

(b) Rs 50 lakh

(c) Rs 1 crore

(d) Rs 5 crore

Answer: (b) Rs 50 lakh

Explanation:

• DPM 2025 permits Limited Tender Enquiry for value "upto Rs 50 lakh and beyond that in exceptional cases."

• This simplifies procurement for lower-value requirements.

8. Which of the following is NOT a stated objective of DPM 2025?

(a) Simplify procurement procedures

(b) Provide more opportunities to MSMEs and start-ups

(c) Ensure operational preparedness

(d) Increase imports of critical defence technology

Answer: (d) Increase imports of critical defence technology

Explanation:

• Objectives mentioned include simplifying procedures, helping MSMEs/start-ups, and ensuring operational preparedness.

• The manual actually aims to reduce import dependence through its focus on indigenisation.

9. DPM 2025 has been structured in how many volumes for user convenience?

(a) One volume

(b) Two volumes

(c) Three volumes

(d) Four volumes

Answer: (b) Two volumes

Explanation:

• Volume I contains main procurement procedures

• Volume II contains forms, appendices and government orders

10. The 'Proprietary Article Certificate (PAC)' provision in DPM 2025 maintains its initial validity for:

(a) 1 year

(b) 2 years

(c) 3 years

(d) 5 years

Answer: (b) 2 years

Explanation:

• The text states that provisions related to PAC have been redefined while "maintaining its initial validity for 2 years."

• This allows for procurement of proprietary items when standard alternatives are not available.