India Defence News | DRDO Updates | Kaveri Engine | Atmanirbhar Bharat
India is strengthening its indigenous defence research and development capabilities with significant investments in advanced military technologies, aircraft engines, unmanned aerial vehicles (UAVs), defence manufacturing and industry-academia collaboration. The Defence Research and Development Organisation (DRDO) has received projects worth ₹29,558.66 crore during the three-year period covered in a Lok Sabha reply dated 25 July 2025.
The Government of India has also introduced several measures to accelerate the development of indigenous defence technologies, including the Kaveri Derivative Engine, Technology Development Fund (TDF), DRDO Industry Academia Centres of Excellence (DIA-CoE) and partnerships with Indian industries.
These initiatives aim to strengthen India’s defence manufacturing ecosystem, reduce dependence on foreign technologies and support the vision of Atmanirbhar Bharat in the defence sector.
DRDO Defence R&D Projects Worth ₹29,558.66 Crore
According to the Ministry of Defence’s reply to Lok Sabha Unstarred Question No. 1018, raised by Shri Tejasvi Surya, the Ministry has been allocating funds for research and development of indigenous defence technologies.
During the period covered by the reply, DRDO was sanctioned 103 projects with a combined cost of ₹29,558.66 crore.
Year-wise Details of DRDO Projects
| Period | Projects Sanctioned | Project Cost |
| 1 January–31 December 2023 | 40 | ₹3,842.71 crore |
| 1 January–31 December 2024 | 43 | ₹22,175.49 crore |
| 1 January 2025 till the date of the reply | 20 | ₹3,540.46 crore |
| Total | 103 | ₹29,558.66 crore |
Source: Ministry of Defence, Government of India, Lok Sabha Unstarred Question No. 1018, answered on 25 July 2025.
The figures represent the cost of projects sanctioned during the specified periods. They should not be interpreted as the amount of money actually spent during those years or as the total annual budget allocation of DRDO.
The data show that 2024 accounted for the largest share of the project value in the period covered by the parliamentary reply.
Kaveri Engine Development: Two Major Projects Sanctioned
One of the important developments highlighted in the Lok Sabha reply concerns the Kaveri Derivative Engine (KDE).
The Kaveri engine programme is associated with India’s effort to develop indigenous aircraft propulsion technology. The Kaveri Derivative Engine is intended to serve as the power plant for a remotely piloted strike aircraft, described in the reply as an IUCAV aircraft.
The Government has sanctioned the following two projects for the development of the Kaveri derivative engine.
| Project | Sanctioned Cost |
| Flightworthy Kaveri Dry Engine Development | ₹472.42 crore |
| Technology Demonstration of Kaveri Derivative ‘Dry’ Engine | ₹251.17 crore |
| Combined project cost | ₹723.59 crore |
These projects are intended to advance engine development and demonstrate the relevant technologies.
The term dry engine refers to an engine configuration that operates without afterburning. The two projects should be understood as specific development initiatives; the parliamentary reply does not state that the engine has completed all testing, certification or operational induction.
Indigenous engine development is strategically important because aircraft propulsion technology involves demanding requirements relating to performance, reliability, materials, thermal management and manufacturing precision.
Major Structural Reforms to Strengthen India’s Defence Ecosystem
In its reply, the Ministry of Defence confirmed that several structural reforms are being undertaken to enhance civil-military cooperation and accelerate the development and production of indigenous defence technologies.
1. Development-cum-Production Partners (DcPP)
DRDO identifies Development-cum-Production Partners (DcPP) to facilitate faster prototype development and a smoother transition from the development stage to production.
Under this approach, Indian industries can participate in the development process at an earlier stage, helping bridge the gap between laboratory research and industrial manufacturing.
This model can support faster technology transfer, improve production readiness and strengthen the participation of domestic manufacturers in defence programmes.
2. DRDO Industry Academia Centres of Excellence
DRDO has established 15 DRDO Industry Academia Centres of Excellence (DIA-CoE) across India.
These centres operate at institutions including the Indian Institute of Science (IISc), various Indian Institutes of Technology (IITs) and Central and State Universities.
Their objective is to encourage focused research in identified areas of defence and security.
The Government has also highlighted the involvement of industries in translating technologies developed through academic projects into practical applications.
This collaboration brings together researchers, scientists, academic institutions and industry partners to address complex defence technology requirements.
3. Zero Technology Transfer Fee for Eligible Industry Partners
DRDO has introduced a revised Technology Transfer (ToT) policy and procedures.
According to the parliamentary reply, the policy provides:
- Zero technology transfer fee for eligible industry partners, including Development-cum-Production Partners (DcPP) and Development Partners (DP).
- Zero royalty for supplies to the Indian Armed Forces and Government departments under the stated policy provisions.
This measure is intended to make DRDO-developed technologies more accessible to Indian industries and facilitate their adoption in domestic defence production.
The applicable policy terms and conditions would govern individual technology transfers and production arrangements.
4. Access to DRDO Testing Facilities
Several world-class testing facilities located in DRDO laboratories have been opened to industries.
DRDO has also formulated the necessary Standard Operating Procedures (SOPs) for their use.
Access to specialised testing infrastructure can help Indian manufacturers validate their products, evaluate performance and improve quality without having to independently establish every type of advanced testing facility.
This is particularly relevant for companies working on defence electronics, aerospace systems, materials, sensors and other specialised technologies.
5. Free Access to DRDO Patents for Industries
DRDO patents are made available through its official website for use by industries free of cost, as stated in the parliamentary reply.
The initiative is intended to encourage the adoption and commercial application of indigenous technologies.
For Indian companies, access to relevant patents can provide a starting point for developing new products, improving existing systems and expanding domestic defence manufacturing capabilities.
Interested businesses should consult the relevant patent details and applicable conditions before adopting any technology.
Technology Development Fund (TDF): Support for Indian Defence Startups and Industries
The Technology Development Fund is an important initiative to encourage innovation by Indian industries.
The scheme provides financial support for the design and development of innovative defence products and technologies.
It can help eligible Indian companies take up development projects that address specific requirements of the Armed Forces and the defence sector.
The broader objective is to encourage indigenous solutions, improve the participation of private industry and reduce reliance on imported technologies.
Companies and innovators interested in defence R&D opportunities should refer to the official DRDO/TDF portal for current project requirements, eligibility conditions, application procedures and funding provisions.
Dare to Dream 4.0: Encouraging Startups and Individual Innovators
DRDO also launched the Dare to Dream 4.0 innovation contest during DefExpo.
According to the Lok Sabha reply, the contest included 10 problem statements.
The initiative is designed to promote innovation among individuals and startups in the defence and aerospace sectors.
Such programmes can encourage entrepreneurs, researchers and emerging technology companies to develop solutions for specific military requirements.
By providing a channel for innovative ideas, these initiatives can expand India’s defence technology base beyond traditional public-sector research establishments.
Civil-Military Cooperation in UAV Certification
Another important reform concerns the certification of Unmanned Aerial Vehicles (UAVs), commonly known as drones.
The Centre for Military Airworthiness and Certification (CEMILAC), a DRDO certification agency, is working with the Directorate General of Civil Aviation (DGCA) to develop a common approach to UAV certification.
The Ministry’s reply states that CEMILAC’s Ministry of Defence-approved guiding document, IMTAR Version 2.0, provides for the adoption of civil drone certification for lower-weight UAVs.
This approach is intended to facilitate common certification criteria for civil and military applications where applicable.
A common certification approach may reduce duplication, improve consistency and help Indian companies develop UAV technologies for different sectors.
CEMILAC is also engaging with international certification agencies, including the European Union Aviation Safety Agency (EASA) and Brazil’s National Civil Aviation Agency (ANAC), as well as aircraft manufacturers Airbus and Embraer.
These interactions concern certification methodologies for civil-military derivative aircraft, with the objective of enabling domestic Development-cum-Production Partners to obtain certification in India.
Defence Industrial Corridors: DRDO Partnerships with TIDEL Park and UPEIDA
DRDO has signed Memorandums of Understanding (MoUs) with TIDEL Park Ltd and the Uttar Pradesh Expressways Industrial Development Authority (UPEIDA).
These partnerships support collaboration in the development of Defence Industrial Corridors.
The purpose is to facilitate the sharing of knowledge, ideas, resources and expertise for strengthening defence-related industrial infrastructure.
Defence Industrial Corridors can help bring manufacturers, technology developers, suppliers and other stakeholders closer to research and production opportunities.
Combined with DRDO’s industry partnerships, these initiatives are intended to support a stronger domestic defence manufacturing ecosystem.
Why Indigenous Defence Technology Matters
India’s investment in indigenous defence research has several strategic and economic implications.
1. Reduced dependence on imports: Domestic development of critical technologies can reduce reliance on foreign suppliers for selected defence systems and components.
2. Stronger defence preparedness: Indigenous research can support the development, maintenance and future improvement of military equipment suited to India’s operational requirements.
3. Opportunities for Indian industries: Development partnerships, technology transfer and access to testing facilities can create opportunities for domestic manufacturers.
4. Support for startups and MSMEs: Initiatives such as TDF and Dare to Dream can encourage smaller enterprises and innovative companies to participate in defence R&D.
5. Research and employment opportunities: Defence technology programmes can create demand for skilled engineers, scientists, technicians and specialised manufacturing professionals.
6. Better integration of civil and military technologies: Cooperation in UAV certification and aircraft certification methodologies can support the use of compatible technologies across civil and defence applications.
The benefits depend on successful technology development, testing, certification, production and adoption by the intended users.
What Has the Government Confirmed?
The Lok Sabha reply establishes the following key facts:
- DRDO was sanctioned 103 projects worth ₹29,558.66 crore during the periods specified in the reply.
- Two Kaveri Derivative Engine projects were sanctioned with a combined cost of ₹723.59 crore.
- DRDO has established 15 Industry Academia Centres of Excellence across India.
- A revised Technology Transfer policy provides zero ToT fees for eligible industry partners and zero royalty for supplies to the Indian Armed Forces and Government departments under the stated provisions.
- DRDO testing facilities and patents are being made available to industries under the announced arrangements.
- TDF and Dare to Dream support indigenous defence innovation.
- DRDO is collaborating with DGCA on UAV certification and with industrial corridor organisations to strengthen defence manufacturing.
These measures demonstrate the Government’s stated approach to increasing domestic participation in defence research, development and production.
Frequently Asked Questions (FAQs)
1. How much funding was sanctioned for DRDO projects?
DRDO was sanctioned projects worth ₹29,558.66 crore during the periods covered by the Ministry of Defence’s Lok Sabha reply dated 25 July 2025.
2. How many DRDO projects were sanctioned during the reported period?
A total of 103 projects were sanctioned: 40 in 2023, 43 in 2024 and 20 from 1 January 2025 up to the date covered by the reply.
3. What is the cost of the two Kaveri Derivative Engine projects?
The Flightworthy Kaveri Dry Engine Development project was sanctioned at ₹472.42 crore, while the Technology Demonstration of Kaveri Derivative ‘Dry’ Engine project was sanctioned at ₹251.17 crore. Their combined cost is ₹723.59 crore.
4. What is the purpose of the Kaveri Derivative Engine?
The Kaveri Derivative Engine is intended to power a remotely piloted strike aircraft, identified in the parliamentary reply as an IUCAV aircraft.
5. What is DRDO’s Technology Development Fund?
The Technology Development Fund provides financial support to Indian industries for designing and developing innovative defence products and technologies.
6. What are DRDO Industry Academia Centres of Excellence?
DIA-CoEs are collaborative research centres established at institutions such as IISc, IITs and universities to promote focused research in defence and security technologies. DRDO has established 15 such centres across the country.
7. Can Indian industries use DRDO technologies?
DRDO has introduced a Technology Transfer policy with zero transfer fees for eligible industry partners under the stated provisions. DRDO patents are also made available to industries free of cost, as reported in the parliamentary reply. Interested companies should verify the specific terms applicable to each technology.
8. What is Dare to Dream 4.0?
Dare to Dream 4.0 is a DRDO innovation initiative intended to encourage individuals and startups to develop innovative solutions in defence and aerospace. The parliamentary reply states that the contest included 10 problem statements.
Conclusion
India’s indigenous defence technology programme is being supported by substantial project sanctions, engine development initiatives, industry partnerships, academic research and reforms in technology transfer and certification.
The ₹29,558.66 crore worth of DRDO projects reported in the July 2025 Lok Sabha reply, along with the Kaveri Derivative Engine projects and other initiatives, reflects the Government’s stated commitment to strengthening domestic defence R&D.
The long-term success of these measures will depend on converting research into reliable technologies, completing necessary testing and certification, scaling up manufacturing and ensuring successful induction into service wherever applicable.
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Official Source
Government of India, Ministry of Defence, Defence Research and Development Organisation, Lok Sabha Unstarred Question No. 1018 — Development of Indigenous Defence Technologies, answered on 25 July 2025.
Official website: https://www.drdo.gov.in/
Disclaimer: This article is based on the parliamentary reply provided by the Ministry of Defence. Project sanctions and announced policy measures should not be interpreted as confirmation of project completion, operational induction or expenditure of the entire sanctioned amount.