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News » India News » Defence ministry scraps Rs 230 crore army drone deal over Chinese parts, hacking risk

India News

Defence ministry scraps Rs 230 crore army drone deal over Chinese parts, hacking risk

NM Desk
Last updated: 7 February, 2025 12:54 PM
NM Desk
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Defence ministry scraps Rs 230 crore army drone deal over Chinese parts, hacking risk

New Delhi: Taking in concerns of hacking and possible hacking, the Centre has cancelled contracts worth Rs 230 crore signed with private sector companies that were found using Chinese equipment in 400 drones meant for deployment by the armed forces along the Line of Actual Control in Ladakh.

Contents
Drones were to be deployed along LACNew rules for procurement

The defence establishment is implementing a “stringent mechanism” to ensure that military drones being procured do not contain “any Chinese parts, electronics, or malicious codes,” according to a report by the Times of India.

Contracts for 200 medium-altitude, 100 heavy-weight, and 100 light-weight logistics drones—collectively valued at over Rs 230 crore—have been scrapped. These contracts were signed with a Chennai-based company under emergency procurement provisions by the Army in 2023.

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Drones were to be deployed along LAC

The drones were primarily intended for deployment along the 3,488-km Line of Actual Control with China, following the military standoff that began in April 2020 when the People’s Liberation Army carried out multiple incursions into eastern Ladakh.

Some Indian companies are using Chinese components and electronics in the drones they are producing for the armed forces. This is a major cybersecurity threat, with the possibility of data security and operations being compromised, the report said.

An official said the drones’ control can be seized or it can be “soft killed” through jamming. There may be a ‘backdoor’ in the electronics that bypasses security protection measures.

New rules for procurement

The urgency surrounding this issue has intensified following incidents of operational failures in UAV deployments for tactical ISR (intelligence, surveillance, and reconnaissance) missions along the borders with China and Pakistan.

In August last year, an infantry unit stationed along the Line of Control in the Rajouri sector inexplicably lost control of a fixed-wing VTOL (vertical take-off and landing) UAV, which subsequently veered into Pakistan-occupied Jammu and Kashmir.

In response, the defence establishment, particularly the Army, has tightened procurement protocols, introducing stricter checks and requiring more comprehensive certifications from drone manufacturers.

Additionally, the defence ministry’s department of defence production has instructed industry bodies such as FICCI, CII, and Assocham to “sensitise and caution” their members against sourcing Chinese components for drones and related equipment, the report added.

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