DRDO Invites Private Firms for Missile Production

The Defence Research and Development Organisation (DRDO) issued an Expression of Interest (EoI) on 18 August 2026 through the Research Centre Imarat (RCI), Hyderabad, for long-term partnership with Indian private defence firms. The proposal uses the Development-cum-Production Partner (DcPP) model for missile and guided bomb manufacturing, with DRDO handling design and development and selected private partners handling prototype integration, qualification, and mass production.

Development-cum-Production Partner model

The DcPP model is a defence production framework in which a research agency develops the design and a private partner undertakes industrialisation and series production. In this model, DRDO retains control over the technology development stage, while the partner firm manages prototype integration, testing support, and manufacturing scale-up.

Weapon systems covered under the proposal

The partnership covers strategic weapon systems, including the Agni-series missiles, future nuclear weapon variants, submarine-launched systems, and hypersonic missiles under development. These systems belong to India’s strategic missile and guided weapons segment, which includes land-based, sea-based, and advanced high-speed delivery platforms.

Eligibility and selection process

Interested firms must hold active defence manufacturing licences and Petroleum and Explosives Safety Organisation (PESO) licences. The stated eligibility criteria include a net worth of more than ₹34 crore and profitability in at least two of the last five years. Reports also mentioned a minimum annual turnover requirement of ₹100 crore, although the exact turnover filter was not made public in all references.

DRDO plans to select at least two private companies for each weapon project. The selected firms will co-develop prototypes and compete for future bulk production orders of 50 to 100 units.

Industrial context in Indian defence production

India’s defence manufacturing ecosystem includes public sector undertakings, ordnance factories, and private firms. Bharat Dynamics Ltd has been one of the major state-owned producers of missiles and related systems in India.

Important Facts for Exams

• DRDO functions under the Ministry of Defence and conducts research in missiles, electronics, aeronautics, and combat systems.
• Research Centre Imarat is located in Hyderabad and works in missile systems development.
• The Agni series is India’s family of ballistic missiles used in strategic deterrence.
• PESO regulates explosives, petroleum, and related safety licences in India.

Proposal timeline

A technical discussion on the proposal is scheduled for 2 September 2026. The final deadline for submitting proposals is 24 September 2026.