In December 2016, the Defence Ministry had permitted the formation of a Defence Innovation Fund under which Defence Innovation Organisation is to be started as a non-profit company in May month to nurture technology growth and original products with profitable potential for the Defence sector.
Defence Innovation Organisation (DIO) will be created by Bharat Electronics Limited and aviation Hindustan Aeronautics Limited.
As per the source, Ministry of Defence gave the task to BEL and HAL and the formation of the new entity will see for development and innovation. DIO will work under Ministry of Defence.
BEL and HAL will contribute partly funds to Defence Innovation Organisation. DIO will fund development for inventive goods and solutions for India’s Defence supplies.