Indian Army Halts 200 Logistic Drone Deal With Dhaksha Unmanned Systems Over Chinese Components Uses

The Indian Army has put hold on its procurement of 200 logistic drones from Chennai-based Dhaksha Unmanned Systems Private Ltd, a subsidiary of Coromandel International, following claims that the company incorporates Chinese parts in its unmanned aerial vehicles (UAVs).

This decision comes despite Coromandel International's announcement last year that Dhaksha had secured the order to supply the drones and accessories to the Indian Army. The company emphasized being the sole domestic entity to receive type certificates from the Directorate General of Civil Aviation (DGCA) for three drone models, spanning medium and small categories, intended for agriculture and surveillance.

Army sources revealed that the contract with Dhaksha has been stalled due to allegations of the company utilizing Chinese components in their UAVs. This action was prompted by intelligence from security agencies.

Advice of Caution​

The Ministry of Defence (MoD) issued a letter in June, urging industry associations to "sensitize" their members to exercise "caution" while procuring defense items from Dhaksha and two other companies.

Dhaksha has asserted to Army officials that they sourced spares from Indian companies, not Chinese ones. However, Army sources countered that the ultimate responsibility rests with Dhaksha.

A Dhaksha spokesperson refuted the claims, stating that the allegations of using Chinese parts in their defense drones are "untrue and unsubstantiated." They clarified, "We do not use any Chinese components in our defense drones."

The company further stated that they had submitted all relevant information and documents regarding component sourcing to the Defence Ministry and successfully completed the quality and process audit. However, Dhaksha publicly did not provide any evidence to substantiate their claim that the MoD was reconsidering its June 25 communication. Regarding the contract being put on hold, the spokesperson stated that the company had not received any such information from the authorities.

DGMI Directives​

An MoD internal note highlighted that the Director General Military Intelligence (DGMI) had issued directives and advisories in 2010 and 2015 concerning the use of Chinese-origin components/items in security-related equipment.

These directives stipulate that sensitive and critical hardware and software of systems and subsystems must not be of Chinese origin due to security concerns. The DGMI also specified that even for non-critical items, the original equipment manufacturer (OEM) should supply components of non-Chinese origin, and these must be tested to rule out embedded malware.

Defense officials have reportedly clarified to the industry that equipment or spares from countries sharing land borders with India are also unacceptable for security reasons.

The move to scrutinize the use of Chinese drones stems from concerns that sensors and flight controllers fitted into the platform could share real-time data and location with servers based in China, which is considered an adversarial nation.

 

[Deepak Hegde]

Not only the orders should be cancelled but the companies should be banned for life ! Such companies cannot b trusted for matters of National security ! Not just the companies but also subsidiaries and any renamed companies which may try to again enter for such contracts !

 

[Instant Karma]

All the Indian private sector drones manufacturing company's except the defence PSUs are using Chinese parts.

 

[PKPRS]

GOI should have thought about this when all of a sudden so many companies popped up like Mushroom after rain without proper background or history or experience or finance.

 

[Akshat]

All the Indian private sector drones manufacturing company's except the defence PSUs are using Chinese parts.

Yeah DPSUs don’t use Chinese parts. Because DPSUs refuse to make stuff in the first place. Still waiting for Dhanush guns 😂😂😂

 

[choriyan2]

All the Indian private sector drones manufacturing company's except the defence PSUs are using Chinese parts.

Do you have any evidence or as usual firing off your imaginations as facts?

 

[Instant Karma]

Do you have any evidence or as usual firing off your imaginations as facts?

No PSUs have been debarred from supplying drones.

 

[Instant Karma]

Yeah DPSUs don’t use Chinese parts. Because DPSUs refuse to make stuff in the first place. Still waiting for Dhanush guns 😂😂😂

All Dhanush have been delivered.

 

[Akshat]

All Dhanush have been delivered.

Not even a quarter have been delivered. Usual DPSU lies.

 

[Mahadev Narayanan]

Not only such companies need to be banned, but must also be vigilant against Chinese in Indian Companies or startups or in projects as it is a security threat!

 

[Arun Mehta]

They once used indigenous drones of Indian company as of their own and now facing law for cheating.

 

[Sunil Choan]

Good decision hope other realise not to use Chinese components

 

[Raja]

Just banning the companies is not going to help. Tell me where is the end-to-end ecosystem in India to make all parts and assemble a drone. Until, the government builds a strong policy framework for developing an ecosystem, all companies will lookup to China to fulfill their needs at low costs

 

[Narayanan K]

How could the army overlook this major security lapse.The army believes in testing and retesting equipments many times and this threat was overlooked.We need a clarity on the issue.