Defence ministry to double DPSU R&D spend to Rs 32,766 crore in 5 years

The Ministry of Defence plans to double the pace of research and development (R&D) to be carried out by Defence Public Sector Undertakings (DPSUs). R&D is needed to master new technologies for indigenous military equipment. A sum of Rs 32,766 crore is proposed to be spent over the next five years only on R&D. The DPSUs manufacture planes, tanks, helicopters, electronic parts, missiles, artillery guns, ammunition, warships, rifles, radars and sensors.

The matter will be discussed on Monday when Defence Minister Rajnath Singh will undertake an annual performance review of the 16 DPSUs. After the review, a compilation of R&D projects carried out in the last 10 years and the plan for the next five years will be released.

In addition, the new R&D Manual of the aviation company Hindustan Aeronautics Limited (HAL) providing flexibility, speed, risk assessment and allocation in R&D projects will be unveiled.

Over the last 10 years, a total sum of Rs 30,952 crore has been invested in R&D by the 16 DPSUs. All DPSUs have prepared their fresh R&D roadmap for the next five years.

“The pace of R&D is now proposed to be doubled with projected expenditure of Rs 32,766 crore over the next five years,” the MoD said.

The Ministry of Defence said on Saturday that the year 2025 has been declared the ‘Year of Reforms’, underscoring the importance of developing new technology by DPSUs and the need for enhancing exports and indigenisation. The DPSUs have been asked to increase their investment and manpower for R&D.

While most of the R&D investment over the last 10 years was made by older DPSUs, notably HAL, Bharat Electronics Limited, and Bharat Dynamics Limited, the thrust on R&D is now spread across all DPSUs. In the next five years, the seven new DPSUs formed upon corporatisation of the Ordnance Factory Board will invest over Rs 3,000 crore for R&D, while defence shipyards have planned an investment of over Rs 1,300 crore.

The minister will also release a report on renewable energy titled ‘Swayam’. This report is the first‑ever attempt made under the aegis of the Department of Defence Production to compile the energy‑efficiency practices of all 16 DPSUs.

The performance of DPSUs in 2024‑25 has been commendable, the MoD said. The total turnover stood at Rs 1.08 lakh crore, up 15.4 per cent from that in 2023‑24. The DPSUs recorded a cumulative profit after tax in 2024‑25 of Rs 20,021 crore, registering a growth of 19.5 per cent over the previous year. Remarkably, in 2024‑25, DPSUs achieved an increase of 51 per cent in exports over the previous financial year.

The event will witness felicitation of various DPSUs for their notable achievements in different areas and the exchange of significant MoUs.