The Indian Army has put on hold acquisition of 200 logistic drones from Chennai-based Dhaksha Unmanned Systems Private Ltd, a subsidiary of agri solution provider Coromandel International, following allegations that the company is using Chinese parts in their unmanned aerial vehicles (UAVs).
On August 7, last year, Coromandel International put out a media statement announcing that Dhaksha Unmanned Systems had bagged an order to supply 200 medium-altitude logistics drones and accessories to the Indian Army.
The company said it’s the only player in the country to receive type certificates from the Directorate General of Civil Aviation (DGCA) for three drone models in medium and small categories for agriculture and surveillance applications.
Sources in the Army told businessline that the contract with Dhaksha for acquisition of logistic drones has been held up and no procurement process is being pursued owing to charges that the company was using Chinese parts for making their UAVs.
The action was initiated on the basis of inputs from the security agencies, said sources.
Advice of caution
In a letter on June 25, the Ministry of Defence (MoD) told industry associations — SIDM of CII, FICCI, and ASSOCHAM — to “sensitise” their association members to exercise “caution” while procuring defence items from Dhaksha and two other companies.
The company has told Army authorities that they took spares from Indian companies and not Chinese. But Army sources said that the ultimate accountability lies with them.
A spokesperson of Dhaksha said the allegations of use of Chinese parts in the company drones are “untrue and unsubstantiated”. “We do not use any Chinese components in our defence drones,” the spokesperson clarified.
“As part of the process, the company had submitted all the information and documents related to sourcing of its components to the Defence Ministry, and has successfully submitted documents towards completion of the quality and process audit,” the company said.
But Dhaksha did not share any evidence with businessline to show that the MoD was reviewing its June 25 communication, which specifically mentions the company. On the specific issue of contract being kept on hold, the spokesperson stated that the company has not received any such information from the authorities.
DGMI directives
The Director General Military Intelligence (DGMI) had issued directives and advisory way back in 2010 and 2015 on the use of components/items of Chinese origin in security-related equipment, an MoD internal note highlighted.
As per these directives, hardware and software of system and sub-system, which are sensitive and critical, must not be from Chinese origin due to security implications.
The DGMI also specified that even for non-critical items, the original equipment manufacturer (OEM) should supply components of non-Chinese origin and that they must be tested to rule out embedded malwares.
Not just China, defence officials are also said to have made it clear to the industry that equipment or spares from countries sharing land borders with India will not be acceptable for security reasons.
The move to check use of Chinese drones is borne out of apprehension that sensors fitted into the platform and flight controllers share real-time data and location on the servers based in the inimical country.