For use by the Indian Armed Forces, DRDO designs and develops items.
After a successful product trial and evaluation, a License Agreement for Transfer of Technology is signed to transfer the technology to Indian firms for mass production (LATOT). On August 19, 2019, the current DRDO Transfer of Technology (ToT) policy went into effect. In accordance with this policy, the DRDO has signed 670 No. LATOTs with industries to date.
DRDO transfers to private businesses both technologies for defence and dual use.
According to the LATOT between DRDO and the industry for the transfer of DRDO developed technology, the recipient industry is obligated to refrain from sublicensing or transferring the know-how/technology gained from DRDO to any party without the prior written consent of DRDO.
Additionally, the LATOT requires the industry to take all necessary precautions to ensure that the technology is not transferred, disclosed, or made accessible to anyone other than the Directors, Officers, employees, and subcontractors who are required for the execution or manufacture of the product under the said LATOT.
The Department of Defense Production’s “Security Handbook for License Defence Industries” mandates that, in the interest of national safety and security, the Licensee industry implement the minimum security standards and other measures for the production and sale of defence items.
This information was given by Raksha Rajya Mantri Shri Ajay Bhatt in a written reply to Shri Derek O’ Brien in Rajya Sabha today.