In a strategic review held on May 26, 2025, Raksha Mantri Shri Rajnath Singh met with the Chairman and Managing Directors (CMDs) of eight key Defence Public Sector Undertakings (DPSUs) at South Block, New Delhi. The meeting opened with the Raksha Mantri congratulating the DPSUs on their role in the success of the recent “Operation Sindoor,” a precision strike at the heart of foreign-sponsored terror.
He commended the DPSUs on their innovation and preparedness in developing mission-critical platforms and technologies, central to the nation’s defense readiness. Furthermore, addressing the entire defense industry, he emphasized the need for platforms such as “Aatmanirbhar Bharat” so that India can easily align its defense requirements with indigenous production and manufacturing.
The government is committed to strengthening the defense industrial base & enhancing the competitiveness of DPSUs – Raksha Mantri, Shri Rajnath Singh
Towards Strengthening the Indigenous Defence Ecosystem
Just last year, the Raksha Mantri visited the newly opened Field Gun Factory, Kanpur, a unit of Advanced Weapons and Equipment India Limited (AWEIL). There, he was briefed by the CMDs of three Defence Public Sector Undertakings (DPSUs), about the product profile, major ongoing projects, R&D efforts, and modernization activities being undertaken by the DPSUs.
Then, last year, he also inaugurated the DefConnect 4.0 at Manekshaw Centre, Delhi Cantt, which marked a milestone in India’s defense innovation journey, bringing together the Armed Forces, Defence Public Sector Undertakings (DPSUs), industry leaders, innovators, start-ups and MSMEs, academia, incubators, investors and policymakers. These go to show how much DPSUs have achieved over the years and how integral they have become to the defense infrastructure of the nation. Furthermore, with the government’s policy of Self-Reliance (Aatmanirbhar Bharat), they will only become more important, especially for indigenous manufacturing, modernization of the Indian Armed Forced and mission-critical R&D.
This was also highlighted during the recent CMD meeting as the Raksha Mantri urged the DPSUs to focus more acutely on cutting-edge technologies, indigenized production, and export-oriented strategies. He urged a proactive shift towards emerging areas of modern warfare, including artificial intelligence (AI), unmanned systems, cyber warfare, and space-based capabilities.
Robust Production Performance
During the meeting, Secretary (Defence Production) Shri Sanjeev Kumar presented a comprehensive overview of the DPSUs’ performance. The projected value of production (VoP) for FY 2024–25 is anticipated to exceed INR 1,40,000 crore, with DPSUs accounting for approximately 78% of this total. This milestone reflects the increasing efficiency and scalability of public sector defense enterprises.
Raksha Mantri commended this growth trajectory but stressed that timely delivery of critical equipment and systems to the Indian Army, Navy, and the Air Force remains paramount. In addition to internal supply commitments, he also placed considerable emphasis on global competitiveness. He directed the CMDs to strengthen product marketing capabilities and leverage India’s growing profile as an emerging defense exporter.
Recognition and Rewards
Highlighting achievements within the DPSU ecosystem, the Raksha Mantri congratulated Hindustan Aeronautics Limited (HAL) for attaining Maharatna status and Mazagon Dock Shipbuilders Limited (MDL) for being awarded Navratna status. These recognitions place both enterprises in elite categories of government-owned entities, providing them enhanced financial autonomy and operational flexibility to compete with global defense manufacturers.
These designations are expected to accelerate their investment in strategic programs, technology partnerships, and R&D activities, enabling India to reduce reliance on foreign defence imports.
Interim Dividend Contribution
In a significant financial gesture, the CMDs of the eight DPSUs presented interim dividend cheques amounting to INR 2,138 crore to the Government of India for FY 2024–25. The contributing DPSUs include:
- Hindustan Aeronautics Limited (HAL)
- Mazagon Dock Shipbuilders Limited (MDL)
- Bharat Electronics Limited (BEL)
- Bharat Dynamics Limited (BDL)
- Mishra Dhatu Nigam Limited (MIDHANI)
- Garden Reach Shipbuilders and Engineers Limited (GRSE)
- Goa Shipyard Limited (GSL)
- BEML Limited
This dividend payout reinforces the fiscal health and profitability of India’s public defense sector, even as they transition towards high-capacity manufacturing and innovation-led operations.
