India Cancels Rs 230 Crore Drone Contracts Over Chinese Components in Military Use
New Delhi, 7th February 2025: Taking strict action against domestic private companies using Chinese components in drones meant for military use, the defence establishment has cancelled three contracts for acquiring 400 logistics drones for the Army.
Additionally, a rigorous screening process is being introduced to ensure military drones are free from Chinese-made parts, electronics, or embedded malicious codes, according to sources.
The cancelled contracts—covering 200 medium-altitude, 100 heavyweight, and 100 lightweight logistics drones—were signed in 2023 under emergency procurement provisions, with a Chennai-based company. Valued at over ₹230 crore, these drones were intended for deployment along the 3,488-km Line of Actual Control (LAC) with China, amid ongoing border tensions since April 2020.
“Some Indian companies are integrating Chinese components and electronics into drones supplied to the armed forces, which poses a serious cybersecurity risk. This could compromise data security and military operations,” a source revealed.
An adversary could potentially seize control of a drone, disable it through electronic jamming, or exploit security loopholes embedded in the electronics, the source added.
The urgency to address this issue has increased following reported operational failures of unmanned aerial vehicles (UAVs) deployed for intelligence, surveillance, and reconnaissance (ISR) missions along the borders with China and Pakistan.
One such incident occurred in August last year when an infantry unit stationed along the Line of Control in Rajouri lost control of a fixed-wing vertical take-off and landing (VTOL) UAV, which then entered Pakistan-occupied Jammu and Kashmir.
An investigation was launched, and the drone manufacturer was summoned. “It appears to have been a technical malfunction. The Army currently operates over 180 of these drones, and feedback on their performance has generally been positive. The August incident seems to be an isolated case,” another source stated.
Despite this, the Army has strengthened its procurement protocols, requiring manufacturers to provide comprehensive certifications confirming the absence of Chinese components or software vulnerabilities. Technical verification and counter-checking measures will also be implemented to ensure compliance.
The Defence Ministry’s Department of Defence Production has instructed industry bodies, including FICCI, CII, and Assocham, to warn their member companies against sourcing Chinese parts for drones and related equipment.
Amid heightened tensions with China, the armed forces have significantly expanded their drone acquisitions, covering a wide spectrum, from nano, mini, and micro drones to kamikaze, logistics, armed swarm drones, and large-scale MALE (medium-altitude, long-endurance) and HALE (high-altitude, long-endurance) UAVs.
