Critically examine the DRDO–private industry–DPSU partnership model in defence R&D, with reference to recent naval programmes.
New · District CollectorCan you hold the district for 72 hours?Floods, a heatwave, an outbreak, a grievance queue. Take the decisions, see the consequences.Play →Indian defence R&D used to pass a design from a DRDO lab straight to a public-sector shipyard or factory (a DPSU). It is now moving to a three-way model: DRDO designs, private firms engineer, and DPSU shipyards integrate. The fuel-cell Air Independent Propulsion (AIP) retrofit for Kalvari-class submarines is the clearest naval test of this model. It shows real promise but is held back by delays and dependence on a foreign designer.
The Model in Action: AIP for Project-75
- DRDO-NMRL designed a fuel-cell AIP that generates its hydrogen onboard. A land-based prototype proved it in March 2021 [1].
- L&T and Thermax helped develop it [1]. L&T built the Energy Module, and its Setting to Work Phase-2 began at Hazira in October 2026 [2].
- MDL holds a ₹1,990 crore contract, signed in December 2024, to build and integrate the AIP Plug [3].
Strengths
- Niche indigenous technology: DRDO calls onboard hydrogen generation unique among AIP efforts worldwide [1].
- Division of labour: labs focus on design, private firms bring manufacturing depth and shipyards bring platform expertise.
- Ecosystem building: L&T and MDL are also the P-75(I) bidders under the Strategic Partnership model [4]. The AIP skills they gain here can carry over to six new fuel-cell AIP boats.
- User in the loop: the Navy tested and validated the system at every trial stage [2].
Weaknesses
- Chronic delays: in January 2023 the AIP was to be fitted "soon" [5]; integration is now targeted for early 2027 [2]. PRS flags delays in indigenous development of defence equipment [6].
- Foreign certification: Naval Group must certify the design [5], because India lacks full design rights over the French Scorpene hull.
- Diffused accountability: the work passes from lab to industry to shipyard, so no single agency owns the schedule slippage.
- Late returns: the Kalvari boats were commissioned between 2017 and 2025 [6], so they get AIP late in their service lives.
- Limited private ownership: design authority and intellectual property stay with DRDO, so industry stays close to build-to-print roles.
The AIP programme shows that the three partners together can deliver frontier technology that none could build alone, though timelines and design sovereignty remain weak links. Four steps can make this model the backbone of a self-reliant, Aatmanirbhar Navy:
- one empowered programme manager
- contracts with payments tied to milestones
- transparent reporting of sea trials
- design-data rights in future deals such as P-75(I)
Sources
- 1DRDO Press Release: Fuel Cell based Air Independent Propulsion (AIP) System Crosses Important Milestone (March 2021)NMRL design, onboard hydrogen generation, land-prototype trials, L&T and Thermax partnership
- 2PIB: Indigenous AIP System – Setting to Work Phase-2 Activity of Energy Module (24 Oct 2026)Energy Module STW-2 at L&T Hazira, Navy validation, early-2027 integration target
- 3PIB: MoD inks Rs 1,990 crore contract with MDL for construction of AIP Plug (30 Dec 2024)MDL contract for the AIP Plug and its integration
- 4PIB: MoD issues RFP for construction of six P-75(I) submarines for Indian Navy (July 2021)Strategic Partnership model; MDL and L&T as bidders; fuel-cell AIP requirement
- 5PIB: DRDO's Fuel Cell-based AIP system to soon be fitted onboard INS Kalvari (Jan 2023)"soon" timeline; Naval Group to certify the AIP design
- 6PRS Legislative Research: Demand for Grants 2025-26 Analysis – Defencedelays in indigenous development; P-75 commissioning timeline