February 7, 2025: In a significant move to uphold national security, the Indian Army has scrapped contracts worth ₹230 crore for the procurement of 400 drones following allegations of Chinese-origin components being used in their manufacturing. These drones were intended for deployment along the Line of Actual Control (LAC) in Eastern Ladakh.

The cancelled contracts included 200 medium-altitude drones, 100 heavyweight drones, and 100 lightweight logistics drones. Among the affected manufacturers is Chennai-based Dhaksha, which had secured an order for logistics drones. Reports suggest that the deal had already been under suspension since August 2024 due to concerns regarding Chinese-made electronic components.

Defence sources have indicated that investigations confirmed the presence of Chinese-origin hardware in the drones, raising alarms about potential security risks, including data leaks and cyber vulnerabilities. The Army's decision aligns with previous warnings issued by the Directorate General of Military Intelligence (DGMI) in 2010 and 2015, advising against using Chinese-made hardware in sensitive defence equipment.

The issue gained further urgency in August 2024 when an Army infantry unit in Rajouri lost control of a fixed-wing VTOL drone, which eventually crossed into Pakistan-occupied Jammu and Kashmir (PoJK). The incident triggered a detailed inquiry, leading to the reinforcement of strict bans on Chinese-origin components in military-grade drones.

As India continues to push for self-reliance in defence manufacturing under the "Aatmanirbhar Bharat" initiative, the latest cancellation underscores the military's commitment to ensuring the integrity of its defence equipment and safeguarding national security interests.