LIC and President of India Backed Heavy Electrical Company Signs Technology Transfer Pact with DRDO for Indigenous Radar Dome Manufacturing

Bharat Heavy Electricals Limited (BHEL) has entered into a Licensing Agreement for Transfer of Technology (LAToT) with the Defence Metallurgical Research Laboratory (DMRL), Hyderabad, a key unit under the Defence Research and Development Organisation (DRDO). This agreement, announced on August 30, 2025, is seen as a strategic milestone in strengthening India’s self-reliance in critical defence technologies.

The agreement, titled “Licensing Agreement for Transfer of Technology (LAToT) for Manufacture of Fused Silica Radar Domes by Cold Isostatic Pressing and Sintering Route,” enables BHEL to manufacture Fused Silica Radar Domes domestically. These radar domes are vital components used in seeker-based guidance systems for India’s missile programmes. By producing them indigenously, India aims to reduce reliance on imports and enhance national security.

DMRL, known for its advanced research in high-temperature alloys and ceramics, has transferred this technology to BHEL. This move aligns with India’s broader strategy of indigenisation in defence manufacturing, similar to how public sector undertakings and private players expand capacity in Large-Cap and Mid-Cap sectors to strengthen core industries.

While financial details such as consideration paid, terms of the deal, and related aspects like share exchange ratio remain undisclosed, the strategic intent of the collaboration is clear. It focuses on reducing foreign dependence and boosting indigenous production for strategic defence requirements.

The announcement reflects a trend of Indian PSUs diversifying into high-technology areas, just as companies expand through IPOs, bonus issues, or right issues in the equity market. For investors tracking defence-related stocks, such developments often raise discussions on long-term growth potential, though it should not be seen as dividend or multibagger opportunity without proper evaluation of Quarterly Results and fundamentals.

This collaboration between BHEL and DRDO highlights the continuous push for technological independence and self-reliance in defence production, a key aspect of India’s strategic and economic policy.

The President of India’s portfolio owns 63.17 per cent and Life Insurance Corporation of India’s portfolio owns 6.72 per cent as of March 2025. The company’s order book stands at Rs 1,96,328 crore.

Disclaimer: The article is for informational purposes only and not investment advice.