DRDO Opens Strategic Weapons Development and Production to Private Sector

The Defence Research and Development Organisation (DRDO) has opened a new route for private companies to take part in the development and production of strategic weapon systems, as per The Economic Times news report.
The organisation has issued an Expression of Interest for companies to qualify for projects handled by its Department of Missiles and Strategic Systems.
The department is responsible for systems including the Agni series of strategic missiles, as well as future nuclear weapon variants, including submarine-launched systems.
Companies Will Work With DRDO
The plan will see companies shortlisted on technical and financial criteria before they are considered for specific DRDO projects. At least two companies will be selected for each project under the development-cum-production partner model.
The selected firms will work with DRDO on prototype development and testing. If the systems are later ordered in large numbers by strategic forces, the same companies will also get production orders.
Private Firms Enter a Space Led by PSUs
Strategic weapon production has largely involved public sector companies such as Bharat Dynamics Ltd. The new process could bring established private defence manufacturers such as Solar Aerospace and Defence and Tata Advanced Systems Ltd into these projects.
Companies will need the required defence manufacturing and explosives-handling licences, along with minimum turnover and net worth requirements.
DRDO to Assess Company Capabilities
The qualifying process will also look at a company's project management record and experience in handling production orders of the required scale. Its ability to manufacture more than 50 or 100 units, depending on the project, will also be assessed.
A DRDO expert committee will visit the premises of participating companies before shortlisting them. The assessment will cover their infrastructure and technical capabilities.
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Conclusion
The new process will allow private companies to participate in both development and production of strategic weapon systems alongside DRDO, with at least two firms planned for each project under the proposed model.
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Published on: Aug 19, 2026, 12:32 PM IST

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