Rajnath Singh opens DRDO missile tech to private sector

New Delhi: The defence ministry has approved the transfer of technology for all conventional missile systems developed by the Defence Research and Development Organisation (DRDO) to Indian industry, marking a milestone step that will enable the private sector to produce the systems at scale and even offer advanced variants tailored to the needs of the armed forces.

Defence minister Rajnath Singh approved the new policy on Tuesday, with officials saying that it will promote greater participation by the industry and increase the addition of domestic value to weapon systems.

Till now, public sector entities have dominated the production of conventional missile systems, with technology being shared by DRDO. The government research organisation has developed a range of such systems, including the Astra air-to-air missile, Rudram anti-radiation missile, Long Range Anti-Ship Hypersonic Missile and Pralay surface-to-surface system.

With the new policy, the sector has been opened to the private sector as well, moving away from an earlier "nomination" culture in which orders were placed on public sector units with limited competitive evaluation.

One factor constraining India's missile exports has been the limited cost competitiveness of public-sector manufacturers. Experience in other segments suggests that private-sector participation can improve this - where production know-how has been shared, private firms have often offered more competitive bids than Public Sector Units (PSUs), for instance, in the supply of Pinaka rockets.

Officials said the technology transfer will be subject to applicable qualifications, certifications and regulatory requirements. A comprehensive qualifying criterion will be vital to ensure that private-sector entities with the resources and infrastructure to execute such projects are chosen for the technology transfer.

"The initiative aims to enhance operational capability, reduce import dependence and increase domestic value addition, while supporting the growth of India's defence manufacturing sector," officials said.