Defence Minister Reviews 16 DPSUs, Highlights Need for R&D, Exports, and Timely Delivery

Union Defence Minister Rajnath Singh directed 16 Defence Public Sector Undertakings (DPSUs) to prioritize timely delivery, reduce import dependency, and transition research and development into technology leadership. The directions were issued during the annual performance review meeting of the DPSUs held at DPSU Bhawan in New Delhi.

The day-long meeting, which commenced at approximately 10 am, included briefings from Secretary (Defence Production) Sanjeev Kumar and the respective Chairmen and Managing Directors (CMDs) of the state-owned entities regarding their operational performance, key achievements, and future roadmaps. Minister of State for Defence Sanjay Seth was also present at the review.

Addressing the gathering, Singh emphasized that the progress of DPSUs is a national security imperative rather than merely an economic or industrial necessity. Citing recent global conflicts, he noted the critical importance of assured supply chains, surge capacity, critical spares, rapid repair capabilities, and sustained production during prolonged conflicts.

While acknowledging increased investments in research and development, Singh stated that innovation success should be measured through the development of intellectual property, new technologies, prototypes, and operational products. He urged the organizations to identify niche technology areas where India can achieve global leadership and self-reliance.

Highlighting the broader objectives of the 'Make in India, Make for the World' initiative, the minister called for elevating product quality to global standards to transform DPSUs into global giants. He shared that India achieved total defence production worth approximately ₹1.8 lakh crore in the 2025-26 fiscal year, with DPSUs contributing ₹1.29 lakh crore toward building an indigenous defence industrial base.

As part of the proceedings, the CMDs of seven DPSUs—Hindustan Aeronautics Ltd (HAL), Mazagon Dock Shipbuilders Ltd (MDL), Bharat Electronics Ltd (BEL), Bharat Dynamics Ltd (BDL), Garden Reach Shipbuilders & Engineers Ltd (GRSE), BEML, and MIDHANI—presented dividend cheques totaling ₹3,951 crore for the government's equity shares for FY25-26. In comparison, the interim dividend cheques presented last year for FY24-25 amounted to ₹2,138 crore.

"The performance review of public sector undertakings highlights the growing commercial and strategic maturity of India's defence manufacturing sector. Delivering a combined dividend of ₹3,951 crore alongside ₹1.29 lakh crore in production contribution demonstrates solid financial execution by these entities. For the broader business and industrial ecosystem, the emphasis on R&D transformation, global quality standards, and export readiness signals substantial supply chain opportunities for domestic manufacturers, tier-1 suppliers, and technology-focused enterprises aiming to integrate into the defence value chain." — Dr. Shishir Gupta, Founder & CEO, StartupLanes