DRDO cleared to transfer all conventional missile tech to pvt industry

Competitive bidding to decide which Indian private firms manufacture these missiles

India’s private defence industry will now compete with its public sector counterparts to manufacture conventional missiles — ranging from those used for air defence to those striking targets hundreds of kilometres away — after Defence Minister Rajnath Singh on Tuesday approved the transfer of all Defence Research and Development Organisation (DRDO)-developed technologies related to such systems to qualified companies for production within the country, further levelling the playing field between private and government-owned companies, the latter having largely been the default manufacturers of such weapons without having to go through competitive bidding.

 

Tuesday’s move is part of the Ministry of Defence’s (MoD’s) shift away from awarding contracts on a nomination basis, where a single government-owned company is given upfront approval for an acquisition programme, with the contract placed without competitive tendering or a chance for merit-based evaluation.

 

“There will be competitive bidding among Indian private firms for the right to receive the transfer of technology, to be selected as the development-cum-production partner, and to undertake systems integration of these missiles in partnership with the DRDO,” an MoD source confirmed to Business Standard on condition of anonymity. At present, defence public sector undertaking (DPSU) Bharat Dynamics Limited remains the country’s principal integrator of long-range missiles, with the various components — from propellant to warhead — manufactured across a distributed industrial network. In the cruise missile space, BrahMos Aerospace — the Indo-Russian defence corporation — occupies a unique position. The defence joint venture manufactures the supersonic weapon that shares its name and is increasing production capacity. 

 

DPSUs have long benefited from orders placed on a nomination basis, a practice the MoD has been moving away from — with aircraft carriers, along with those missiles and submarines that fall under strategic classification, a narrow exception — to create a level playing field for private firms in the defence industry.

 

Announcing that Singh has “approved the transfer of DRDO-developed technologies of all conventional missile systems to the Indian defence industry for production within the country”, an MoD release on Tuesday said that this transfer of technology will promote greater participation of the domestic industry in the defence ecosystem by enabling it to undertake indigenous production, subject to applicable qualifications, certifications and regulatory requirements.

 

The move is meant to ensure the transition of these weapons from development to production, and covers only conventional missile systems — those meant to strike adversary ships, combat aircraft and ground targets while carrying conventional warheads, or to defend against incoming threats as part of the country’s air defence network — in essence, weapons and systems without a strategic application. It therefore excludes nuclear-armed strategic missiles such as those in the Agni series.

 

“The objective is to enhance domestic manufacturing capabilities, strengthen the defence industrial base and create opportunities for the participation of Indian MSMEs and other technology partners in the supply chain,” said the MoD.

 

As first reported by Business Standard in May, the DRDO has been directed to licence technologies for non-strategic missiles to the private sector. At the time, an MoD source had told Business Standard, on condition of anonymity, that the organisation had already enlisted private partners for weapons such as short-range air-defence missiles and anti-ship missiles. The source had also identified the Astra beyond-visual-range air-to-air missile and various types of conventionally-armed surface-to-surface ballistic missiles, including the Pralay surface-to-surface quasi-ballistic missile, as the most likely candidates.

 

The move, aimed at enhancing production capacity and ensuring affordable mass in conventional missiles, comes against the backdrop of lessons drawn from the West Asia war and the Russia-Ukraine conflict, as well as Pakistan’s decision to set up an Army Rocket Force Command.

 

The move is also meant to enhance the operational capability of the armed forces, reduce import dependence and increase domestic value addition, according to the MoD release.