The Defense Ministry has warned against the incorporation of Chinese components in Indian military drones.
The MoD has responded to the use of Chinese spares and parts by Indian companies in manufacturing and selling drones in India.
On June 25, the Department of Defence Production (DDP) of the MoD reached out to industry organizations such as FICCI, Assocham, and CII’s Society of Indian Defence Manufacturers (SIDM). In their letter, they requested these bodies to educate and warn connected manufacturers against sourcing materials from companies that use Chinese spare parts in the production of drones in India. Currently, the MoD is closely examining all suppliers of drones to the armed forces and has temporarily halted an order for 200 logistic drones from Dhaksha Unmanned Systems Pvt. Ltd.
The Department of Defence Production, Ministry of Defence, has become aware that Dhaksha Unmanned Systems Pvt. Ltd, Sky Industries in Gandhinagar, and Garuda Aerospace Pvt. Ltd are allegedly selling/supplying UAVs/drones to Indian Defence Forces. This reportedly involves assembling and integrating Chinese components, according to a letter from the DPP addressed to industry bodies.
The DPP emphasized in the letter for all Industry associations to inform their members in defence manufacturing to be careful when obtaining defence items from the mentioned three companies, as well as to be alert when purchasing from other players in this industry.
The Union Home Minister is believed to be investigating internal matters in order to identify potential business malpractices that could compromise the security of the country.
When asked for a response, a spokesperson for Dhaksha Unmanned Systems stated: “We want to clarify that our company does not utilize any Chinese components in our defence drones. Any allegations claiming otherwise are baseless and unsupported. We have also restated this fact to officials at the Defence Ministry. As part of this procedure, we have provided all pertinent information and documents regarding our sourcing of components to the ministry and have successfully completed a thorough quality and process audit. Dhaksha Unmanned Systems remains devoted to producing ‘Make in India’ drones.”
Garuda Aerospace’s Chief Operating Officer, Dr Vijayakumar Rajarathinam, clarified that the Ministry of Defence (MoD) has not made any formal or specific accusations against their company. He emphasized that as a DGCA-approved drone manufacturer, Garuda Aerospace abides by all government regulations and maintains high standards of quality and security in the assembly and integration of our drones.
In addition, we have been invited by the Army to take part in important occasions planned by the Eastern and Western Commands on August 5th and August 12th, respectively…As far as any precautionary notice is concerned, I would like to emphasize that it is merely a standard procedure and not indicative of any misconduct on our behalf,” he elaborated.
Industry bodies have reported receiving the Ministry of Defence’s (MoD) message to review the utilization of Chinese components in drone production within India. According to a representative from one of the associations, who wished to remain anonymous, the MoD’s communication has been shared with members for their evaluation.
Despite being part of industry associations, companies do not submit compliance reports on flagged issues as these cautionary directions are not mandatory for member firms. The Defence Ministry has also banned the use of hardware and software from China and other countries that share land borders with India in drones and their sub-systems.
In 2017, the CBI launched a case against Sidh Sales Syndicate in Delhi and a defense PSU, Guns Carriage Factory, for allegedly passing off Chinese-made parts as “Made in Germany” for Dhanush artillery guns.
