DRDO Invites Private Firms to Build Strategic Missile Systems

The Defence Research and Development Organisation (DRDO) has invited Indian private-sector companies to bid for the development and production of strategic missile and bomb systems. This initiative, issued through the Research Centre Imarat in Hyderabad, marks the first time the Directorate of Missiles and Strategic Systems has opened expressions of interest to the private sector for India's strategic arsenal, including the Agni series and K-series submarine-launched ballistic missiles.

Historically, production was primarily handled by state-run entities such as Bharat Dynamics Ltd. The new framework aims to reduce reliance on state-owned undertakings as part of the Atmanirbhar Bharat initiative. DRDO intends to onboard at least two companies per project to establish surge capacity for rapid scaling during conflicts, with goals to reach production rates of two to three missiles per month for systems like the Agni-1P and K-15.

To qualify, firms must meet strict financial benchmarks, including a minimum annual turnover of Rs 100 crore, and hold a valid industrial licence for defence production and a Petroleum and Explosives Safety Organisation (PESO) licence for handling explosives. Under the development-cum-production partner model, DRDO will manage design and development while partners handle integration, qualification, and mass production. Upon completion of the development phase, DRDO will provide free, non-exclusive technology transfers to selected partners to enable production for the three armed forces and life-cycle logistics support.