Defence tenders: DAP 2020, MES works, DPSUs and indigenisation

Defence tenders are among the largest and steadiest sources of government business in India, and you don't have to make weapons to win them. Most defence procurement is ordinary: buildings and roads, electrical work, spares, rations, uniforms, vehicles and maintenance. This guide explains DAP 2020 and revenue procurement in plain words, where defence tenders are published, how MES and the defence PSUs buy, and the indigenisation and iDEX routes open to MSMEs and startups.

How defence procurement works: capital and revenue

The Ministry of Defence (MoD) spends from two budget heads, and each has its own rulebook.

Most small and medium firms deal with revenue procurement, and with works, which MES tenders like any public works department.

DAP 2020: capital procurement in plain words

The Defence Acquisition Procedure 2020 sets how the armed forces buy new capital equipment. In outline:

1. Need approved. The buyer gets an Acceptance of Necessity (AoN). For major cases it comes from the Defence Acquisition Council, chaired by the Raksha Mantri. The AoN also fixes the category.
2. Category decides who can bid. DAP 2020 prefers Indian sources. Its top category, Buy (Indian-IDDM), is for equipment that is Indigenously Designed, Developed and Manufactured, with at least 50% indigenous content. Buying from abroad is the last choice.
3. Request for proposal (RFP). The RFP goes to the vendors identified for the case, after a request for information (RFI) stage in many cases.
4. Evaluation. Technical evaluation, field trials of the equipment, then commercial negotiations with the lowest bidder.
5. Contract signed with the winning vendor.

DAP 2020 also has a "Make" route, in which Indian industry develops prototypes for the forces, some of it with government funding and some funded by industry.

Revenue procurement and DPM 2025

Day-to-day buying by the Army, Navy, Air Force and other MoD bodies is revenue procurement. It covers spares, stores, clothing, rations, maintenance and repair, and services. The MoD released the Defence Procurement Manual 2025 in October 2025, replacing the 2009 manual.

• In force from 1 November 2025. RFPs issued from then follow DPM 2025. Cases whose RFP was issued up to 31 October 2025 continue under the old manual.
• Who buys. Units, depots, workshops and headquarters across the country, through open tenders on defproc.gov.in, limited tenders to registered vendors, and GeM.
• GeM first. As for any central ministry, items available on GeM are bought on GeM, with a compulsory bid or reverse auction above ₹10 lakh.

Much revenue buying goes through limited tenders, sent only to firms registered with that buyer. Getting registered with the units, depots and DPSUs that buy your items is the defence version of vendor empanelment.

The Defence eProcurement portal (defproc.gov.in)

The Defence eProcurement portal, defproc.gov.in, is the MoD's NIC-run e-tendering site. Most of its tenders come from MES; Army, Navy, Air Force and DRDO units use it too.

To bid:

1. Get a Class 3 digital signature certificate (DSC) in the name of the person who will sign bids. See DSC for e-tender.
2. Enrol using Online Bidder Enrollment on defproc.gov.in. This is separate from your enrolment on eprocure.gov.in or a state portal. The steps are the same as on other NIC portals: NIC e-procurement bidder registration.
3. Register your DSC, then search tenders by organisation, location or keyword.
4. Download the tender, bid online before the deadline and attend the online bid opening.

GovtTenderHub lists open tenders from the portal on its Defence eProcurement tenders page, searchable by state, keyword and closing date.

MES tenders: defence works

Military Engineer Services (MES) is the construction and maintenance agency for the Army, Navy, Air Force and other defence establishments. It builds and repairs barracks, quarters, roads, airfields, water supply, electrical installations and more, and maintains them under term contracts. Its tenders are published on defproc.gov.in under the Engineer-in-Chief's Branch and its formations.

What to know before bidding for MES tenders:

• Enlistment. Like CPWD, MES enlists works contractors by category and class, and many of its tenders ask for MES enlistment in the right class. Contractors enlisted with MES can also bid up to their limit in CPWD tenders that are opened to other departments' contractors.
• Location. Work is spread across cantonments, stations and border areas, so many small contracts suit local contractors.
• Usual works conditions apply: EMD, performance security, similar-work experience and the usual documents.

See live work on our MES tenders page.

Defence PSU tenders

Defence public sector undertakings (DPSUs) make everything from radars and aircraft to ships, vehicles and ammunition, and buy large amounts of material, components and services. They include Hindustan Aeronautics (HAL), Bharat Electronics (BEL), BEML, Bharat Dynamics, Mazagon Dock Shipbuilders, Garden Reach Shipbuilders and Engineers (GRSE), Goa Shipyard, Hindustan Shipyard, Mishra Dhatu Nigam (MIDHANI), and the companies formed from the old ordnance factories.

• Where they publish. BEL, BEML, Mazagon Dock, GRSE, Hindustan Shipyard, Goa Shipyard and MIDHANI share an eProcurement system; others use their own portals and GeM. See defence PSU tenders.
• Vendor registration. Each DPSU registers vendors for its own items, and much of its buying goes to registered vendors.
• MSE benefits. As central PSUs, DPSUs must buy at least 25% of their goods and services from micro and small enterprises, and give MSEs the usual tender benefits. See MSME benefits in government tenders.

Indigenisation: Srijan and positive indigenisation lists

Defence buyers import many parts and want Indian firms to make them. Two tools show you what they need.

Srijan portal (srijandefence.gov.in). Launched by the Department of Defence Production on 14 August 2020, Srijan lists items that DPSUs and the Services' headquarters have imported or plan to import. Each entry shows the item, its specification and import value. You express interest in an item and then develop and make it yourself or with a partner. Srijan doesn't take bids: the buyer follows up with interested firms under its own procedure.

Positive indigenisation lists. These list items that, after the timelines shown against them, are to be bought from Indian industry.

• The Department of Military Affairs has notified lists of weapons, systems and platforms for the Services.
• The Department of Defence Production has notified lists of sub-systems, assemblies, spares, components and materials for DPSUs, the latest being its sixth list, of 405 items.

For an MSME, these lists are a road map of what defence buyers will need from Indian makers, and by when.

Make in India. Defence purchases also come under the Public Procurement (Preference to Make in India) Order, with Class-I local suppliers (50% or more local content) getting purchase preference in central tenders. Our Make in India guide has the rules.

iDEX for startups and MSMEs

Innovations for Defence Excellence (iDEX) was launched in 2018. It is run by the Defence Innovation Organisation (DIO), a not-for-profit company, under the Department of Defence Production.

• How it works. The Services, DPSUs and other defence bodies post problem statements as challenges, such as the Defence India Startup Challenge (DISC). Startups, MSMEs and individual innovators apply with their solutions.
• Grants. Winners can get grant support of up to ₹1.5 crore to develop a prototype. iDEX Prime, launched in April 2022, supports projects needing more, up to ₹10 crore, and the ADITI scheme, launched in 2024, up to ₹25 crore for critical and strategic technologies.
• No equity. DIO's support is grant-in-aid, and it takes no stake in your company.
• After the prototype. A successful prototype can lead to a procurement order from the Service or DPSU that set the challenge.

Details and open challenges are on idex.gov.in.

Common questions

How do I apply for defence tenders?

Get a Class 3 DSC, enrol on defproc.gov.in (and GeM, and the portals of the DPSUs you want to supply), and register as a vendor with the units or DPSUs that buy your items. For MES works, get enlisted with MES in the right class.

What is DAP 2020?

The Defence Acquisition Procedure 2020 is the MoD's rulebook for capital purchases: new weapons, platforms and systems. It prefers Indian sources, with Buy (Indian-IDDM) as its top category. A draft DAP 2026 was released for comments in February 2026 and will replace it once approved.

What is the difference between DAP and DPM?

DAP covers capital procurement, buying new equipment. DPM covers revenue procurement, such as spares, stores, maintenance and services. DPM 2025 has applied to RFPs issued from 1 November 2025.

Can MSMEs get defence tenders?

Yes. MSEs get the same benefits in defence tenders as in other central tenders, DPSUs must buy at least 25% from MSEs, and MES works and much revenue buying suit small firms. Srijan, the positive indigenisation lists and iDEX are aimed at MSMEs and startups.

What is the Srijan portal?

It is the Department of Defence Production's portal, srijandefence.gov.in, listing items that DPSUs and the Services import. Indian firms express interest in making them, and the buyer takes it forward under its own procedure.

Where are MES tenders published?

On the Defence eProcurement portal, defproc.gov.in, under the Engineer-in-Chief's Branch and its formations. GovtTenderHub lists them with other open defence tenders.