Defence Ministry Cancels Drone Contracts Over Use of Chinese Components

Cracking down on private domestic companies using Chinese components in drones meant for the armed forces, the defence establishment has scrapped three contracts for 400 logistics drones intended for Army deployment.

The cancelled contracts, worth over ₹230 crore, included 200 medium-altitude, 100 heavy-weight, and 100 light-weight logistics drones. These were signed in 2023 with a Chennai-based company under emergency procurement provisions and were primarily meant for use along the Line of Actual Control (LAC) with China.

Cybersecurity Concerns Over Chinese Components

The decision stems from concerns that Chinese parts pose cybersecurity risks, including the potential for operational data breaches and adversarial control over drones. “An adversary can seize control of a drone or disable it through jamming. There could also be backdoors in the electronics, bypassing security protections,” a defence source said.

Instances of operational failures, including the loss of control over a drone near the Line of Control (LoC) in Rajouri last August, have reinforced the urgency of eliminating Chinese components. Although the Army uses over 180 such drones with generally positive feedback, security concerns remain.

Stricter Regulations for Drone Procurement

The defence establishment has tightened procurement checks, requiring more comprehensive certifications from manufacturers and additional technical verifications to ensure drones are free from Chinese parts or malicious codes.

The defence ministry’s department of defence production has also directed industry bodies like FICCI, CII, and Assocham to caution companies against sourcing Chinese components for drones and related equipment.

India’s Expanding Drone Capabilities

With tensions along the border, the armed forces are rapidly acquiring a variety of drones, including nano, mini, micro, kamikaze, logistics, swarm, and large-scale MALE (medium-altitude, long-endurance) and HALE (high-altitude, long-endurance) UAVs. The push for indigenous development remains a priority to enhance security and self-reliance in military technology.

Switch Language »