The Prime Minister’s Office (PMO) and ministry of defence (MoD) claim indigenisation – or replacing foreign-procured equipment with kit built in India – is a key priority. Yet, an Indian company that indigenised components faces heavy financial losses after the MoD blocked its payments.

Tata Power (Strategic Engineering Division), one of India’s most capable defence electronics innovators, beat out global competition in 2011 to bag a Rs 1,219 crore contract to modernise 30 Indian Air Force (IAF) and one Indian Navy airfields. But now, even as Tata Power (SED) ...