DPSUs plan to double R&D pace in 5 years with ₹32,766 crore plan

Move follows Defence Minister Rajnath Singh's call for greater investment and manpower in R&D to develop new technologies and boost indigenisation and exports

Research and development (R&D) spending by the country’s 16 defence public sector undertakings (DPSUs) over the next five years is slated to increase with a projected expenditure of ₹32,766 crore, exceeding ₹30,952 crore invested in the past 10 years.

 

This comes amid a 15.4 per cent rise in the DPSUs’ combined turnover to ₹1.08 trillion, a 19.5 per cent increase in cumulative profit after tax to ₹20,021 crore, and a 51 per cent jump in exports in FY25 over FY24, according to the Ministry of Defence (MoD).

 

Following Defence Minister Rajnath Singh’s call for greater investment and manpower in R&D to develop new technologies and enhance indigenisation and exports under the ‘Year of Reforms’ initiative, the MoD said all 16 DPSUs have prepared their R&D roadmap for the next five years.

 

“Over the last 10 years, a total sum of ₹30,952 crore has been invested in R&D by the 16 DPSUs. The pace of R&D is now proposed to be doubled with projected expenditure of ₹32,766 crore over the next five years,” added the MoD.

 

The MoD noted that while most R&D investment over the past decade came from the old DPSUs — notably Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited, and Bharat Dynamics Limited — the focus on R&D is now being extended across all DPSUs.

 

Over the next five years, the seven new DPSUs created through the corporatisation of the Ordnance Factory Board (OFB) are slated to invest more than ₹3,000 crore in R&D, while defence shipyards have planned an investment of over ₹1,300 crore, it added.

 

The development coincides with the defence minister’s scheduled annual performance review of the 16 DPSUs in New Delhi on Monday. During the event, the roadmap for the next five years — along with a compilation of research, design and development projects undertaken over the past decade — will be released.  In addition, HAL’s new R&D manual will be unveiled to enhance flexibility and speed in executing projects, while enabling more effective risk assessment and budget allocation. The event will also feature felicitations for various DPSUs in recognition of their achievements across different domains, along with the exchange of significant memorandums of understanding. 

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