Defence Public Sector Undertaking

The responsibility of Defence Public Sector

Undertakings (DPSUs) is to provide the Armed
Forces state-of-the-art equipment's and at the
same time enhance country's self-reliance in
defence production.

The Hindustan Aeronautics Limited (HAL)
- It is largest public sector undertakings under the Department
of Defence Production.
- Formed in October 1964 with its Corporate Office at Bangalore.
- The company has 19 production division and 9 R & D centers
located in six states.
- HAL's product range consists of aircrafts, helicopters, aero-
engines, accessories and avionics.
- It has diversified into aerospace launch vehicles and satellites,
industrial and marine gas turbine engines. HAL is a major partner
for the space programmes of ISRO.
- It manufacturers structures and assemblies for the launch vehicles and
satellites.
- Recently it has handed over the first "Crew Module Structural Assembly"
for the "Human Spaceflight Program to ISRO for crew support,
navigation, guidance and control systems to experiment in the
forthcoming GSLV-MK3 launch.
Bharat Electronics Limited (BEL)
- The leading professional electronics company in the country
engaged in the design, development and manufacture of
sophisticated state-of-the-art electronic equipments for the
use of defence services.
- It has 9 production units and 31 manufacturing divisions
spread across 7 states.
- The company focuses on Research and Development to
generate business using the 'state-of-the-art' manufacturing
and testing facilities.
- It has earned Governments NAVRATNA status in 2007.
- Product range includes Radars, Missiles, Sonars, Tank
electronics, Sound and Vision broadcasting etc
The Bharat Earth Movers Limited (BEML)

- BEML is Asias second largest manufacturer of earth moving
equipment and controls 70% of Indias market in this sector.
- The earthmoving equipment includes Bulldozers, Dump
Trucks, Hydraulic Excavators, Wheel Loaders, Rope Shovels,
Walking Draglines, Motor Graders and Scrapers.
- The company also manufactures railway coaches and
wagons for Indian Railways and defence forces.
- Recently, BEML has diversified its business by successfully
assembling state-of-the-art stainless metro coaches for
Delhi Metro Rail Corporation(DMRC).

Garden Reach Shipbuilders and Engineers Limited (GRSE)

- GRSE is among the leading shipyards in the country and the
premium yard in the East.

- GRSE builds a wide range of ships ranging from sophisticated
warships to ultra modern commercial vessels and from small
harbour crafts to fast and powerful patrol vessels.

- India's first ever tanker fleet too was built at GRSE.

- The latest on the list is new generation hovercraft.

- The second in the series of eight Landing Craft Utility (LCU)
Mark-IV ships being built for the Indian Navy was launched on
22 September 2014.
Goa Shipyard Limited (GSL)

- Implemented the first successful enterprises planning
system amongst the Defence Public Sector Undertakings.

- The product range of the Shipyard comprises of :
- 105m Advanced Offshore Patrol Vessels (AOPV)
- 105m Naval Offshore Patrol Vessels (NOPV)
- Offshore Patrol Vessels (OPV)
- Sails Training Ships(STS)
- Seaward Defence Boats (SDB)

- Till date it has built 167 vessels, including barges, tugs, landing
craft, offshore patrol vessels and other vessels for the Indian Navy,
Coast Guard and for export to countries like Yemen.

- GSL built INS SUMITRA, the patrol vessel of Indian Navy, on 4
September 2014.
The Bharat Dynamics Limited (BDL)
- It is amongst the few strategic industries in the public sector
that possesses the capability to produce advanced Guided
Missile Systems.

- Produces Konkurs M and Invar (3UBK-20) missiles in
collaboration with Russia.

- BDL is working in close association with DRDO for
technology absorption/assimilation.

- Extending support by providing integrated missiles for
conducting various trials of missiles like AKASH, NAG, Article K-15,
AGNI VARIANTS etc.
Mishra Dhatu Nigam Limited (MIDHANI)

- It is the prime specialized metals and metal alloys
manufacturing facility in India.

- An ISO certified company with modern metallurgical
facilities and high degree of technical competence in
manufacturing a wide range of Super alloys , Titanium,
Special Purpose Steels and other special metals and alloys.

- Has application in Aerospace, Defence, Navy, Atomic Energy,
Power Generation, Chemical and other hi-tech industries.

- MIDHANI and VSMPO-AVISMA, worlds largest producer of titanium and
titanium products in Russia, have shown interest to collaborate in several
areas and signed a Memorandum of Understanding (MoU) on 22 January
2014 clearing the deck to prepare a proposal for joint business.

Defence Public Sector Undertakings
Name of the PSUs 2010-2011 2011-12 2012-13
(April-Dec 2012)
(Provisional)
Value of
Production
Value of Sales Value of
Production
Value of Sales Value of
Production
Value of Sales
HAL 16450.84 13115.50 12693.19 14204.21 14403.82 14315.68
BEL 5520.80 5529.69 5793.58 5703.63 6290.19 6012.19
BEML 3795.07 3647.07 4077.19 3648.37 3359.70 3289.79
MDL 2611.41 636.56 2523.69 2262.87 1068.51 1063.19
GRSE 1053.30 546.22 1293.80 546.33 1507.21 427.25
GSL 990.32 514.46 676.40 269.70 506.00 749.36
BDL 910.92 939.10 992.94 959.12 475.00 475.00
MIDHANI 485.46 417.87 496.00 509.01 2810.00 2424.81
HSL 603.84 652.14 564.04 564.04 553.78 558.59
TOTAL 32421.96 25998.06 29110.83 28667.28 30974.21 29315.86
VALUE OF PRODUCTION AND SALES OF DEFENCE PSUs
Defence Public Sector Undertakings
Undertakings have not been able to arm the defence forces,
resulting in huge arms imports
In last 5 years, India imported nearly three times as many
weapons imported as by China and Pakistan
Though the volume of production by DPSUs has increased
over the years, the value addition by them has progressively
decreased
Most of DPSUs are over-dependent on external sources for
raw material, components and spare parts, and capital goods
for the production requirements
The export performance of DPSUs taken together is below the
three per cent of total value of production or total value of
sales


Need for Private sector undertakings
According to the US War Department, private sector is
better equipped for defence industry because:
1. Defence industry is highly technology driven and it is the
private sector that adapts itself better to rapidly
changing technology
2. The private sector possesses business acumen to spot
fleeting opportunities for long term survival and
continued prosperity of their enterprise.
3. Open and free competition compels companies to
master frontier technology to beat their rivals for the
limited orders available. It, in turn, helps the nation to
build a reservoir of latest technology to give it an edge
over its prospective adversaries.
Governments action plan
Manufacture of components, assemblies and
sub-assemblies was thrown open to the
private sector in 1991
Government opened defence production to
the private sector in January 2002
It allowed 100 percent private equity

Armed with the knowledge
Armed with the knowledge
Armed with the knowledge
Armed with the knowledge
Advanced radars
Partnership between private
companies and foreign OEM
Indian Company Foreign OEM Work Domain
TATA group EADS Advanced tactical
communication
systems
Thales Optronic solutions for
multi-role combat aircraft

Larsen & Toubro Boeing P-8I reconnaissance planes,
naval systems
EADS Manufacture high-end
defence
electronics
Raytheon Upgrade of T-72 tanks

Fincanteri Fleet refuelling tankers,
naval
systems
Partnership between private
companies and foreign OEM
Indian company Foreign OEM Work Domain
Mahindra group BAES Up-armoured light vehicles,
specialist military vehicles,
mine
protected vehicles, artillery
systems
Telephonic Corporation Radars and electronics
Bharat Forge Elbit Artillery and mortars
systems
solutions

Reliance
Industries Ltd
Dassault
Aviation
Defence and homeland
security