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Business News/ News / India/  India to acquire 31 US drones for armed forces; deal worth 25,000 crore: Check details
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India to acquire 31 US drones for armed forces; deal worth ₹25,000 crore: Check details

India is set to submit a letter of request to the US government to procure 31 MQ-9B drones under the foreign military sales program. The deal is estimated to be valued at $3.07 billion.

During PM Modi's state visit to the US on June 22, a joint statement by the two nations mentioned the proposed deal.Premium
During PM Modi's state visit to the US on June 22, a joint statement by the two nations mentioned the proposed deal.

India is set to submit a letter of request (LoR) to the US government this week to initiate the procurement of 31 MQ-9B remotely piloted aircraft systems (RPAS) under the foreign military sales (FMS) program, the Hindustan Times reported citing officials familiar with the matter. 

The LoR will outline the requirements of the three services, specify the equipment sought, and propose the terms of procurement. The deal is estimated to be valued at $3.07 billion (over 25,000 crore).

The acceptance of necessity (AoN) for the purchase of the MQ-9B General Atomics high-altitude long endurance (HALE) drones was granted by India's defence acquisitions council (DAC) on June 15. This marked the first step towards acquiring military hardware.

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The United States will respond to the LoR with a letter of offer and acceptance (LoA) after a formal congressional notification. Following this, India will engage in negotiations with the US, considering the price and terms offered, before finalising the deal through the contract negotiation committee and seeking approval from the cabinet committee on security led by Prime Minister Narendra Modi.

During PM Modi's state visit to the US on June 22, a joint statement by the two nations mentioned the proposed deal. The statement highlighted that General Atomics would establish a comprehensive global maintenance, repair and overhaul (MRO) facility in India, supporting the country's long-term goal of enhancing indigenous defence capabilities.

While questions have been raised by the Congress party regarding pricing, acquisition procedures, technology transfer, and self-reliance in defence, government officials have defended the deal, emphasising that India aims to negotiate a competitive agreement with the US that ensures transparency and facilitates the transfer of critical technologies. 

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The number of drones to be purchased is based on the operational requirements of the armed forces.

Out of the 31 drones, 15 will be allocated to the navy and eight each to the Indian Army and the Indian Air Force. Ten drones are expected to be procured as ready-made units while the remaining 21 will be assembled in India, HT reported. 

The estimated cost of the deal includes weapons, sensors, ground control stations, logistics support and other necessary equipment.

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India will also seek a higher element of technology transfer, aiming to double the current offering from 8-9% to 15-20%. The versatile MQ-9B platform is capable of striking targets, conducting intelligence, surveillance, and reconnaissance (ISR) operations, and fulfilling roles such as electronic warfare, defensive counter air, and airborne early warning.

The decision on the number of drones to be acquired was based on a scientific study that considered the requirements of the three services and the extensive land and maritime borders of India.

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ABOUT THE AUTHOR
Sounak Mukhopadhyay
Sounak Mukhopadhyay, who also goes by the name Sounak Mukherjee, has been producing digital news since 2012. He's worked for the International Business Times, The Inquisitr, and Moneycontrol in the past. He's also contributed to Free Press Journal and TheRichest with feature articles. He covers news for a wide range of subjects including business, finance, economy, politics and sports. Before working with digital news publications, he worked as a freelance content writer.
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Updated: 03 Jul 2023, 07:22 AM IST
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