2 weeks ago

DRDO Invites Private Firms for Missile Production Partnerships

India’s defence research agency, DRDO, wants private companies to help make some missiles and bomb systems.

Companies will first be checked to see whether they have the right skills, licences and money.

Experts will visit the companies’ facilities before making a shortlist.

At least two companies will be chosen for each project.

The companies will work with DRDO to build prototypes.

These prototypes will then be tested.

A company could later receive an order to make many units if the armed forces need them.

Public-sector companies currently produce most of these strategic weapons.

The plan could give private Indian companies a larger role in defence manufacturing.

Key facts

Lead agency: Defence Research and Development Organisation (DRDO)
Eligible companies: Indian private companies with relevant technical, financial and manufacturing capabilities
Required licences: An industrial licence for defence manufacturing and a PESO licence for handling and storing explosives
Financial requirement: Minimum turnover requirements and a net worth exceeding 5% of the expected work value
Selection model: At least two companies will be selected for each project
Production assessment: Companies may be assessed on their ability to produce more than 50 or 100 units
Current production base: Strategic weapons are primarily produced by public-sector companies such as Bharat Dynamics Ltd.

businesstoday.in · 2 weeks ago