As a part of the major restructuring plan for Defence Research and Development Organisation (DRDO), the defence ministry on Thursday announced setting up of a new commercial arm of the organisation.
To be created by DRDO as a private limited company, the arm will have a seed capital of about Rs 2 crore. It would deal only with the spin-off products and technologies meant for civilian use. It will not take up any manufacturing activity. For any production activity the services of public or private sector industry will be utilised.
To ensure effective participation of the private sector in defence technology and to give a major boost to DRDO, the defence minister AK Antony approved a series of measures that are expected to transform and revitalise the DRDO?in form and substance.
The key measures to make DRDO effective in its functioning include the establishment of a Defence Technology Commission with the defence minister as its chairman.
The minister also ordered decentralisation of DRDO management, making it a leaner organisation by merging some of its laboratories with other public funded institutions with similar disciplines, the statement said.
As per the restructuring plans, the present director general of DRDO will be redesignated as its chairman and will also head the DRDO management council. The council will have seven directors general and four chief controllers of research and development and a financial advisor as its members.
The directors general and the chief controllers will report to the chairman, while financial advisors at the appropriate levels would report to directors general to ensure accountability.
The decentralisation of DRDO management will be achieved through formation of at least seven technology-domain based centres or clusters of laboratories headed by directors general to ensure timely execution of major programmes.
To revamp the HR structure, the DRDO has been instructed to now hire an eminent HR expert as consultant who will be entrusted with the task to examine issues such as selection and tenure of directors and avenues for the induction of talented persons, independently spotted by the Llab directors and the heads of centres.
It is decided that the budget for rejuvenating research may reach 5 % of DRDO budget in of three years. Aeronautical Development Agency (ADA) will continue to perform its role of design and development of aircraft and DRDO would continue with the Kaveri Aero-Engine Programme. DRDO will also take up the development of MBT Arjun Mk-II and Mk-II version of Akash. Itwill also select industry partners through a transparent process by evolving a suitable mechanism.
It may be recalled that a committee was set up in February, 2007, chaired by former secretary, Department of Science and Technology, P Rama Rao to review and suggest measures to improve the functioning of DRDO.