DRDO has invited Indian companies to partner in developing, integrating and producing missile and guided bomb systems, widening the role of private industry in defence manufacturing
The Defence Research and Development Organisation (DRDO) has invited Indian companies to participate in the development and production of missile and guided bomb systems, expanding the role of domestic industry in weapons developed by the government research agency.
DRDO’s Research Centre Imarat (RCI) issued an Expression of Interest (EOI) to identify and shortlist companies as Development Cum Production Partners (DcPPs) for projects under the Directorate General (Missiles and Strategic Systems) cluster.
The shortlisted companies will subsequently be considered for project-specific Requests for Proposal (RFPs), according to the EOI.
The move comes as India seeks to expand domestic defence manufacturing and reduce its dependence on imported military equipment by involving private industry more closely in the development and production of weapons for the armed forces.
From development to production
The companies selected under the process will be expected to participate in the development, assembly and integration of weapons designed by DRDO.
They will have to build the infrastructure and technical capabilities required for integration and qualification of the systems.
After DRDO completes the development phase and user trials, the selected companies will work with a DRDO-identified supply chain to execute production orders placed by the armed forces.
The firms could also provide upgrades and integrated logistics support during the weapons’ service life, subject to approval from the concerned DRDO laboratory.
More from BusinessThe exact infrastructure and technical requirements will be set out in separate RFPs for individual projects.
The EOI calls for companies with experience in complex system integration, trained technical personnel and established quality assurance and quality control systems.
Firms must also have the ability to undertake bulk production of more than 50 or 100 units, depending on the project. DRDO will assess their infrastructure, technical capabilities and managerial manpower.
Financial requirements
Companies seeking to participate must have an annual turnover of at least ₹100 crore.
Their net worth must be more than 5 per cent of the Acceptance of Necessity (AoN) value of the specified project. The minimum net worth requirement under the current EOI is ₹34 crore.
Applicants must have been profitable in at least two of the previous five years and have a minimum long-term credit rating of BBB (stable) from CRISIL, ICRA or an equivalent agency.
They must also maintain an in-house quality assurance and quality control department and hold an internationally recognised quality management certification such as ISO 9001:2015 or AS9100. DRDO has said AS9100 is preferred.
A valid industrial licence for defence items is mandatory.
The qualification criteria also require companies to have experience in the integration or manufacture of complex systems, including missiles and guided bombs.
Experience in full-system integration, testing and delivery is considered desirable, while experience in system integration and testing of complex sections is mandatory.
Explosives handling a key requirement
The EOI sets detailed requirements for companies that will handle explosives during the development and production of the weapons.
Applicants must obtain the required licence from the Petroleum and Explosives Safety Organisation (PESO). The licence must be secured at least halfway through the DRDO project phase and before transfer of technology takes place.
The EOI allows some explosive-handling requirements to be met through a licensed joint venture or memorandum of understanding partner.
Selected companies must have adequate infrastructure for weapon integration and the safe handling of explosives.
They must either have or establish an explosive storage facility capable of holding at least five tonnes of explosives, including TNT and RDX, at any given time. The facility must be in place within one year of a production order being placed.
Companies must also provide a SAMAR Assessment Certificate through DIIQM, DRDO headquarters, by May 1, 2027, or apply for the certificate before submitting their EOI response.
They will also have to comply with DRDO’s cyber-security guidelines during the development phase.
How companies will be evaluated
DRDO will evaluate applications on technical capabilities, licences and certifications, management experience and infrastructure.
The evaluation framework carries 100 marks. Companies must score more than 60 per cent overall and at least 50 per cent in each technical compliance category.
A committee of DRDO experts will assess the applications and can visit the premises of participating companies to verify their capabilities before shortlisting them.
The EOI says generally two DcPP companies will be selected for each project.
However, submitting a response does not guarantee that a company will receive a project-specific RFP.
Existing DRDO-identified DcPPs are not required to respond to the EOI. Their continuation or renewal will be considered through a separate review process.
Free technology transfer
Companies selected as development and production partners will receive technology transfer free of cost on a non-exclusive basis after successfully completing the DRDO development project phase.
The transfer will be subject to DRDO’s policies and procedures.
Technology involving high-energy materials and systems will be transferred only to industries that hold the necessary PESO licences and clearances.
The arrangement is designed to allow private industry to take technologies developed by DRDO into production while maintaining regulatory controls over sensitive materials and systems.
