Context:

A high-level committee has been established by the Defence Minister to review the functioning of the Defence Research and Development Organization (DRDO).

More about the news:

• A committee is tasked with redefining the Department of Defence’s role to align with India’s future technological needs.
• In 2019, a parliamentary committee highlighted DRDO’s underperformance and recommended a significant organizational restructuring.
  • From January 2010 to December 2019, DRDO terminated 103 mission mode projects, incurring ₹2,505.23 crore in expenses.
• A CAG report criticized DRDO for categorizing 20 mission mode projects as ‘successful’ despite unmet goals.
• The DRDO established the Dr. P. Rama Rao Committee to evaluate its operations; while it endorsed the suggestions, it did not implement the proposal to establish a Board of Research for Advanced Defence Sciences (BRADS).

Terms reference of the committee:

• To comprehensively restructure and redefine roles within the Department of Defence and DRDO.
• To refine interactions with academia and industry for increased participation from academia, MSMEs, and startups in advancing technology.
• To establish project-based workforce incentives, disincentives, and accountability measures.
• To utilize NRIs, foreign consultants, and international collaborations for cutting-edge defense technology development.
• To modernize administrative, personnel, and financial systems for streamlined project implementation.
• To focus on streamlining laboratory structures and improving performance evaluation processes.

Challenges with the functioning of DRDO:

• Government PSU Model: DRDO operates similar to a government PSU, considering the entire defense process as its exclusive domain.
• Hindrance to Defence Acquisitions: It often impedes defense acquisitions by considering the entire process as its own domain rather than supporting the private sector and efficient hardware procurement. Example, anti-tank guided missiles and unmanned aerial vehicles.
• Insufficient funding: Financial constraints have led to the scaling down of some major initiatives. 
  •  It has received around 6% of the defence budget.
• Low Production Output: It was meant to promote indigenous weaponry manufacturing in India, but its production output has been low. 
  • India still imports 70 per cent of its defence equipment requirements, making it the world’s largest arms importer, according to SIPRI.
• Substandard production: Armed forces have rejected 70 per cent of the products in the last 15 years because the products did not meet their standard.
• Project delays: Persistent delays plague DRDO projects, resulting in significant budget overages. 
  • The HELINA, helicopter launched anti-tank missiles, with December 2010 as the deadline was finally tested successfully in 2022.

Way Forward:

• Apex Decision-Making Body: Establish a Defence R&D Council comprising top military leaders and scientists to focus on capability development plans aligned with Long-Term Integrated Perspective Plans (LTIPPS) covering a 15-year period.
• Private Sector Involvement: Remove defense production from DRDO’s purview and involve the private sector.
• Armed Forces’ Endorsement: Ensure complete endorsement of DRDO by the armed forces, with clear direction and vision regarding their requirements.
• Foreign Joint Ventures: Promote joint ventures with select foreign manufacturers to enhance domestic manufacturing capacity (e.g., BrahMos Aerospace and Multirole Transport Aircraft Ltd with Russia).
• Decommission Redundant Projects: Discontinue redundant DRDO labs and projects to unlock physical assets for innovation fostering funds.

News Source: Hindustan Times