DRDO Signs Two Key Naval Defence Technology Pacts for Submarine Decoys and LM2500 Systems

India has taken another step towards expanding domestic production of critical naval systems, with the Defence Research and Development Organisation’s Naval Science & Technological Laboratory signing two Licensing Agreements for Transfer of Technology with Indian industry.

The Visakhapatnam-based Naval Science & Technological Laboratory (NSTL) has signed agreements covering a Submarine Fired Decoy (SFD) with defence public sector company Bharat Dynamics Limited and technology linked to the fabrication, installation and commissioning of LM2500 gas-turbine systems with Hyderabad-based Vertex Engineering Systems Pvt. Ltd. DRDO confirmed the agreements through an official announcement.

The agreements are significant because they move technologies developed or engineered by DRDO laboratories into an industrial production environment. This can expand the number of Indian companies capable of manufacturing, integrating and supporting specialised equipment used aboard submarines and surface warships.

Submarine Fired Decoy Technology Goes to BDL

The agreement with Bharat Dynamics Limited (BDL) covers the Submarine Fired Decoy, a soft-kill defensive system intended to protect submarines against hostile torpedoes.

Unlike a hard-kill system that physically destroys an incoming weapon, a soft-kill countermeasure attempts to break the torpedo’s engagement by confusing or deceiving its guidance system.

DRDO describes its Submarine Fired Decoy as a countermeasure capable of operating in different modes and sinking patterns to jam, seduce and confuse attacking torpedoes. It is designed to work against both active and passive homing torpedoes and incorporates advanced signal-processing hardware and seduction algorithms.

Modern torpedoes rely heavily on acoustic sensors to detect, classify and home in on submarines. A decoy can generate an acoustic signature that appears more attractive to the torpedo than the actual submarine. Jamming elements can also interfere with the weapon’s ability to obtain a reliable target solution.

The objective is to force the incoming torpedo away from the submarine or prevent it from maintaining an effective track.

BDL already has considerable experience with underwater weapons and countermeasure systems. The company has previously described its Submarine Fired Decoy as a system that can act as a preferred target in the presence of the submarine when confronted by active or passive homing torpedoes.

Transferring the technology to BDL can therefore provide a pathway for larger-scale production, lifecycle support and future deliveries to the Indian Navy.

Vertex Gets LM2500-Related Naval Technology

The second Licensing Agreement has been signed with Vertex Engineering Systems Pvt. Ltd., a Hyderabad-based engineering company with experience in specialised naval equipment.

The announced scope relates to technology for the fabrication, installation and commissioning of systems associated with the LM2500 gas-turbine installation. Contemporary reports describing the agreement specifically link Vertex with this LM2500-related work.

The distinction is important. The agreement should not be interpreted as DRDO transferring intellectual property for the LM2500 engine itself. The LM2500 is a GE Aerospace marine gas turbine used internationally as a naval propulsion system.

NSTL has, however, developed indigenous technologies associated with integrating LM2500 turbines aboard naval vessels. One important example is the LM2500 Gas Turbine Infrared Suppression System, or GT-IRSS.

In April 2026, Bharat Heavy Electricals Limited disclosed a separate technology-transfer agreement with NSTL covering the fabrication, installation and commissioning of the LM2500 GT-IRSS for naval vessels. BHEL’s official disclosure identified the system as an NSTL-DRDO design.

Infrared suppression is particularly important for modern warships because a gas turbine produces a significant thermal signature through its exhaust. Reducing that signature can make the ship more difficult to detect and track using infrared sensors and can strengthen protection against infrared-guided threats.

Vertex already manufactures equipment for naval and submarine applications, including valves, actuation equipment, high-pressure systems, cooling equipment, torpedo-system components and gas-turbine-generator fuel-system equipment.

Expanding India’s Naval Industrial Base

The two agreements demonstrate the increasingly important relationship between DRDO laboratories and Indian manufacturers.

DRDO can develop and validate specialised defence technologies, but large-scale deployment requires companies capable of manufacturing equipment consistently, integrating it aboard operational platforms and supporting it throughout its service life.

The Submarine Fired Decoy agreement strengthens India’s domestic capability in underwater warfare and submarine survivability. The LM2500-related agreement expands the industrial ecosystem supporting complex propulsion and associated naval engineering systems.

They also represent two different parts of India’s defence-industrial strategy. BDL brings the manufacturing infrastructure of a major defence public sector undertaking, while Vertex brings specialised private-sector engineering capability.

For the Indian Navy, developing multiple domestic sources for such equipment can improve supply-chain security and reduce dependence on overseas support for critical subsystems. It can also shorten repair and upgrade cycles while allowing indigenous systems to evolve alongside new Indian warships and submarines.

The latest NSTL technology transfers therefore extend beyond two individual licensing agreements. They form part of the wider effort to ensure that technologies developed inside India’s defence laboratories eventually reach production lines, naval platforms and operational service.

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