The Ministry of Defence (MoD) has taken action against Indian companies using Chinese spares and parts to manufacture and sell drones in India.

The Department of Defence Production (DDP) of the MoD sent a letter on June 25 to industry bodies, FICCI, Assocham and CII’s Society of Indian Defence Manufacturers (SIDM), asking them to “sensitise” and “caution” associated manufacturers from procuring items from companies using Chinese spare parts for making drones in India. The MoD has placed an order for 200 logistic drones from Dhaksha Unmanned Systems Pvt. Ltd on hold and scrutinising all firms supplying drones to the armed forces.

“It has come to the notice of the Department of Defence Production, Ministry of Defence, that Dhaksha Unmanned Systems Pvt. Ltd; Sky Industries, Gandhinagar; and Garuda Aerospace Pvt. Ltd are reportedly engaged in selling/supply of UAVs/drones to Indian Defence Forces which include assembly and integration of Chinese components,” the DPP letter to industry bodies said.

“All the Industry associations are hereby requested to sensitise their members engaged in defence manufacturing to exercise caution while procuring defence items from said three companies and remain vigilant while procuring from other players in this field,” the DPP stressed in the letter.

The Union Home Minister is also believed to be conducting internal inquiries to identify similar business malpractices jeopardising the country’s security.

Companies’ stance

When asked their response, a spokesperson for Dhaksha Unmanned Systems said: “We would like to clarify that Dhaksha Unmanned Systems does not use any Chinese components in its defence drones, and any such claims are untrue and unsubstantiated. Dhaksha Unmanned Systems has also reiterated this fact to the Defence Ministry officials. 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. Dhaksha Unmanned Systems remains steadfast on its commitment to manufacture ‘Make in India’ drones.”

Dr Vijayakumar Rajarathinam, Chief Operating Officer of Garuda Aerospace said, “There have been no formal or specific accusations made by the Ministry of Defence (MoD) against Garuda Aerospace Pvt Ltd. regarding the assembly or integration of Chinese components into our drones. As a DGCA-approved drone manufacturing company, Garuda Aerospace strictly adheres to all government regulations, ensuring that our products meet the highest standards of quality and security.”

“Moreover, we have received invitations from the Army to participate in significant events organized by the Eastern and Western Commands on August 5th and August 12th, respectively...We believe that the cautionary notice if it exists, is a routine measure and not a reflection of any wrongdoing on our part,” he added.

Sources in the industry bodies confirmed receiving the MoD’s correspondence to check the use of Chinese parts in manufacturing drones in India. A representative for one of the industry associations said on condition of anonymity the letter from MoD has been “circulated” to members for their consideration.

However, companies associated with the industry associations do not provide any compliance report on issues flagged by the industry bodies as such cautionary directions are not binding on member firms. The Defence Ministry, on its part, has prohibited the use of hardware and software of systems and sub-systems of drones made in China and other countries sharing land borders with India.

Earlier in 2017, the CBI had filed a case against Delhi-based Sidh Sales Syndicate and defence PSU Guns Carriage Factory on charges of selling China-made spares as “Made in Germany” for Dhanush artillery guns.

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