Rajnath Singh's Defence Review: How DPSUs Plan to Double R&D Investment

Notably, the defence minister had earlier declared 2025 as the ‘Year of Reforms’, underscoring the importance of the development of new technology by DPSUs and the need for enhancing exports and indigenisation.

To achieve this objective, he exhorted them to increase their investment and manpower for R&D.

“Since then, all the DPSUs have prepared their R&D roadmap for the next five years. Over the last 10 years, a total sum of Rs 30,952 crore has been invested in R&D by the 16 DPSUs,” the Ministry of Defence (MoD) said in its press note on Saturday.

The pace of R&D is now proposed to be doubled with projected expenditure of Rs 32,766 crore over the next five years. While most of the R&D investment over the last 10 years was made by old DPSUs, notably Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited and Bharat Dynamics Limited, the thrust on R&D is now spread across all DPSUs,” it added.

Similarly, in the next five years, the seven new DPSUs formed upon corporatisation of the Ordnance Factory Board will invest over Rs 3,000 crore for R&D, while defence shipyards have planned an investment of over Rs 1,300 crore.

“During the event, a compilation of D&D/R&D projects carried out in the last 10 years, and the plan for the next five years will be released. In addition, the new R&D Manual of HAL, providing flexibility, speed, risk assessment, and allocation in R&D projects, will be unveiled,” MoD said.

The Union Minister will also release a report on renewable energy, titled ‘Swayam’.

This report is the first-ever attempt made under the aegis of the Department of Defence Production to compile the energy efficiency practices of all 16 DPSUs.

Notably, the performance of DPSUs in 2024-25 has been commendable.

The total turnover stood at Rs 1.08 lakh crore, up 15.4 per cent from that in 2023-24. The DPSUs recorded cumulative Profit After Tax in 2024-25 of Rs 20,021 crore, registering a growth of 19.5 per cent over the previous year.

Remarkably, in 2024-25, DPSU achieved an increase of 51 per cent in exports over the previous Financial Year.

The event will also witness felicitations to various DPSUs for their notable achievements in different areas and the exchange of significant MoUs.

- IANS