Defence Public Sector Undertakings

Defence Public Sector Undertakings (DPSUs) are government-owned enterprises under the Department of Defence Production, Ministry of Defence, Government of India. Major DPSUs include Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BEL), Garden Reach Shipbuilders and Engineers Limited (GRSE), Bharat Earth Movers Limited (BEML), Mazagon Dock Shipbuilders, Goa Shipyard Limited, and several others. Together, these enterprises form the backbone of India's indigenous defence manufacturing capability.

Role in the Startup Ecosystem

DPSUs have become significant demand-side participants in India's startup ecosystem. Through structured innovation challenges and procurement programs, they create market opportunities for startups developing defence and dual-use technologies. DPSUs also co-founded the Defence Innovation Organisation (DIO), which manages iDEX (Innovations for Defence Excellence), directly connecting startups with military procurement pathways.

Programs and Initiatives

The DRISHTI Challenges (DPSU-driven Research and Innovation for Strategic and High-impact Technology Integration) is a large-scale innovation program featuring 101 problem statements sourced from major DPSUs. These problem statements cover artificial intelligence, robotics, embedded systems, aerospace components, naval systems, electronic warfare, materials engineering, and manufacturing innovations. Funding ranges from approximately INR 5 lakh to INR 10 crore depending on the complexity of the solution. Through iDEX, co-founded by HAL and BEL, DPSUs support startups via Defence India Startup Challenges (DISC) and Open Challenges, providing SPARK grants up to Rs 1.5 crore (up to Rs 10 crore under iDEX Prime). Selected innovators gain financial support, access to domain experts, testing environments, certification pathways, and potential procurement contracts from DPSUs.

Who Benefits

Deep-tech startups working in aerospace, defence electronics, naval systems, advanced materials, robotics, autonomous systems, electronic warfare, and manufacturing innovation benefit most. Startups at the validation and early revenue stages with functional prototypes that can address specific DPSU problem statements are ideal candidates. Companies that successfully deliver solutions through DRISHTI or iDEX can secure ongoing procurement relationships with DPSUs.

Strategic Impact

DPSUs collectively represent the largest potential customer base for defence-tech startups in India. By publishing structured problem statements and providing development funding, they create clear pathways from prototype to procurement. This demand-driven model reduces market uncertainty for defence-tech founders and accelerates India's Atmanirbhar Bharat (self-reliant India) goals in defence manufacturing.