Modi govt opens up conventional missile production to private players. Astra & Pralay up for grabs
The Defence Ministry approved transfer of technology from the Defence Research and Development Organisation (DRDO) to private Indian companies for production of conventional missile systems
The move ends the earlier nomination-based model under which contracts went directly to Defence Public Sector Undertakings (DPSUs) such as Bharat Dynamics Limited
The policy covers all conventional missile systems designed and developed by DRDO, with the Astra air-to-air missile and Pralay quasi-ballistic missile named as the initial systems opened to private participation
The stated objectives are to increase domestic manufacturing capacity, reduce import dependence, raise indigenous value addition, and give a larger role to MSMEs and technology partners in the missile supply chain
DRDO-to-Industry Technology Transfer under the Defence Acquisition Procedure (DAP) 2020
DAP 2020 is the current framework governing India's defence procurement and indigenisation, replacing the earlier Defence Procurement Procedure (DPP) 2016. It integrates acquisition, indigenisation, and long-term sustainment, and provides the policy basis under which DRDO-developed technologies can be licensed to private industry for series production.
Key Details
- DAP 2020 introduced or expanded categories such as "Buy (Indian-IDDM)" — Indian Designed, Developed and Manufactured — to prioritise indigenous R&D-based procurement
- DAP 2020 was framed as a pillar of the Atmanirbhar Bharat (self-reliant India) initiative in defence manufacturing
- Technology transfer from DRDO to industry (public or private) is a standing indigenisation route distinct from direct government-to-government "Buy (Global)" imports
- The 2026 decision specifically extends DRDO technology-transfer eligibility for conventional missile systems to qualified private companies, not just DPSUs, ending the earlier nomination-based allocation to entities like Bharat Dynamics Limited
This policy change operationalises the DAP 2020 indigenisation push by widening the pool of eligible private manufacturers for DRDO-designed missile platforms, moving from a DPSU-nomination model to a competitive, capability-based model.
Astra and Pralay — Indigenous Missile Systems
Astra and Pralay are DRDO-developed missile systems representing India's indigenous air-to-air and surface-to-surface strike capability respectively, both now opened to expanded private-sector production.
Key Details
- Astra is a Beyond Visual Range (BVR) air-to-air missile developed by DRDO, with variants offering ranges from over 100 km up to roughly 180-200 km, intended to engage enemy aircraft before they enter visual range
- Pralay is a solid-fuelled, quasi-ballistic short-range surface-to-surface missile with a strike range of roughly 150-500 km, designed for tactical battlefield use; it combines ballistic-missile speed with manoeuvrable, cruise-missile-like terminal flight to complicate interception
- Pralay has already been contracted in quantities of roughly 350-370 missiles for the armed forces
- Both systems are distinct from the BrahMos supersonic cruise missile (a joint India-Russia venture), where private companies already manufacture components and launchers
Opening Astra and Pralay to private production follows the precedent set by BrahMos component manufacturing, extending private-sector participation from a joint-venture cruise missile to purely DRDO-indigenous missile platforms.
Defence Public Sector Undertakings (DPSUs) vs Private Sector in Defence Manufacturing
India's defence manufacturing base historically relied on DPSUs (e.g., Bharat Dynamics Limited, Hindustan Aeronautics Limited) that received production orders on a nomination basis without open competition; recent policy has progressively opened this space to private industry.
Key Details
- DPSUs are wholly or majority government-owned companies under the Department of Defence Production, Ministry of Defence
- The "nomination basis" model allowed the government to directly assign production contracts to DPSUs without competitive private bidding
- Private sector defence manufacturing has been enabled through reforms including 100% FDI in defence (up to 74% automatic route, beyond that via government route), the creation of iDEX (Innovation for Defence Excellence) for start-ups, and corporatisation of the Ordnance Factory Board into seven Defence Public Sector Undertakings in 2021
- The missile technology-transfer decision is described as diversifying production sources partly to allow faster fulfilment of existing missile orders if required by the armed forces
This decision is a further step in the broader shift from a DPSU-monopoly to a competitive public-private defence industrial base for high-value strategic systems like missiles.
- Policy: DRDO technology transfer for all conventional missile systems extended to qualified private companies
- Missiles named: Astra (air-to-air) and Pralay (quasi-ballistic surface-to-surface)
- Astra range: approximately 100-200 km (BVR class, variant-dependent)
- Pralay range: approximately 150-500 km; already contracted in quantities of roughly 350-370 units
- Governing framework: Defence Acquisition Procedure (DAP) 2020, successor to DPP 2016
- Earlier model: nomination-based contracts to DPSUs such as Bharat Dynamics Limited
- Stated market opportunity: "several thousand crores" for private industry