Bharat Electronics Ltd (BEL) said advance qualification testing (QT) and first-of-production-model (FOPM) work could enable faster execution of the anticipated Quick Reaction Surface to Air Missile (QRSAM) contract once it is awarded, despite delays in the procurement process.

The company expects the QRSAM project to involve a broad industrial ecosystem, with more than 200 micro, small and medium enterprises (MSMEs) expected to participate. BEL indicated that these partners could undertake around 70% of the work, alongside contributions from public-sector suppliers and larger private-sector companies, including L&T, under what it described as a public-private partnership model.

According to management, suppliers have not waited for a formal contract award before preparing for production. BEL stated that its partners have made “reasonably good investments on their own side” to improve production readiness and support FOPM realisation ahead of schedule.

The company explained that advance QT activities and early FOPM preparation are intended to reduce the time typically required between contract award and operational execution. Management identified these efforts as the principal means of mitigating the impact of the delay in receiving the QRSAM order.

BEL noted that FOPM refers to first-of-production-model realisation and said work has been progressing with supply-chain partners in advance. However, the company did not disclose whether a completed production model already exists, the number of units involved, or the timeline for full-rate manufacturing.

This approach forms part of BEL’s wider operational strategy aimed at improving delivery performance. Management said the company is monitoring on-time delivery more closely and is attempting to bring committed deliveries forward by one to two months. It also reiterated its objective of moving closer to a near-100% execution track record and avoiding an excessive concentration of output in the final quarter of the year.

BEL stressed that the QRSAM delay stems from the scale and complexity of project documentation rather than any newly identified manufacturing issue. Management acknowledged that it had previously expected the award process to conclude earlier, but later recognised that approval timelines could extend further than originally anticipated.

While remaining optimistic about a positive outcome, the company confirmed that no signed contract has yet been received and that the programme still awaits final approval. Management added that the expected value remains unchanged and indicated that government procurement processes do not typically provide significant escalation adjustments for delays of around one to one-and-a-half years.

BEL also highlighted that its focus remains on executing available orders efficiently rather than slowing production activity while awaiting major new awards.

The company believes the groundwork already completed through QT and FOPM activities should help prevent delays in contract award from translating into equivalent delays in production and delivery.

The key issue now is the timing of the final QRSAM approval and confirmation of the eventual contract terms. Once awarded, the effectiveness of BEL’s advance preparation strategy will be measured by its ability to convert early qualification and production-readiness work into timely deliveries and stronger execution performance.

Agencies