Home Finance India To Spend 25,000 Crore To Buy 31 US Drones 

India To Spend 25,000 Crore To Buy 31 US Drones 

by Team, Endoc
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India To Spend 25,000 Crore To Buy 31 US Drones 

According to the Hindustan Times, India is prepared to send a letter of request (LoR) to the US government this week to begin the acquisition of 31 US drones under the foreign military sales (FMS) program. 

The LoR will explain the specifications for the three services, list the equipment that is desired, and suggest the procurement conditions. The transaction is thought to be worth $3.07 billion (more than Rs. 25,000 crore).

On June 15, India’s military acquisitions council (DAC) approved the acceptance of need (AoN) for the procurement of MQ-9B General Atomics high-altitude long endurance (HALE) US drones. This was the initial step towards getting military equipment.

After official notice to Congress, the US will reply to the LoR with a letter of offer and acceptance (LoA). After that, India will negotiate with the US, taking into account the conditions and price put out, before concluding the agreement through the contract negotiation committee and requesting permission from the cabinet committee on security. It is chaired by Prime Minister Narendra Modi.

The potential arrangement was announced in a joint statement released by the two countries on June 22 during PM Modi’s official visit to the US. The announcement made clear that General Atomics will build a sizable global MRO facility in India to serve that nation’s long-term objective of boosting domestic defense capabilities.

Government officials have defended the deal, highlighting that India seeks to negotiate a competitive agreement with the US that ensures transparency and facilitates the transfer of crucial technologies, despite concerns being raised by the Congress party regarding pricing, acquisition procedures, technology transfer, and self-reliance in defense. 

India To Spend 25,000 Crore To Buy 31 US Drones 
India To Spend 25,000 Crore To Buy 31 US Drones 

The quantity of drones to be procured will depend on the military’s operational needs.

The Navy will receive 15 of the 31 US Drones, and the Indian Army and Indian Air Force will each receive 8 US Drones. Ten drones are anticipated to be purchased as finished goods, while rest,21 drones,st 21 will be put together in India, according to HT. 

Weapons, sensors, ground control stations, logistical support, and other essential equipment are all included in the deal’s projected price.

India would also try to triple the present offering from 8 to 9% to 15-20% in order to increase the percentage of technology transfer. The adaptable MQ-9B platform can perform tasks including electronic warfare, defensive counter-air, and airborne early warning, in addition to carrying out intelligence, surveillance, and reconnaissance (ISR) activities.

The number of drones to be purchased was determined by a scientific analysis that took into account the needs of the three agencies as well as India’s large land and maritime boundaries.

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