India Looks Forward to Obtaining 31 MQ-9B Drones from the US, a Deal Amounting to Rs. 25,000 Crore

India to drop a letter of request regarding procurement of 31 MQ-9B drones to the US government, for their armed forces. The deal value is estimated at $3.07 billion.

Written by: Arjita Gupta

Edited by: Krutarth Ghosalkar

Last Updated: July 03, 2023

India is prepared for LoR (letter of request) to the US government for the procurement of 31 MQ-9B RPAS (remotely piloted aircraft systems) after Prime Minister Narendra Modi’s visit to the United States on 22 June 2023. The proposal is in consideration under the FMS (foreign military sales) program, and reports say that the related authorities are aware of it and that the two nations are in consent about the armed forces’ assistance. The LoR will explain the specifications for the 3 services, list the equipment that is desired, and suggest the procurement conditions.

The transaction is thought to be worth $3.07 billion (more than 25,000 crores). On June 15, India's defence acquisitions council (DAC) approved the acceptance of Need (AoN) for the procurement of MQ-9B General Atomics high-altitude long endurance (HALE) drones. This was the initial step toward getting military equipment. After formal notification to Congress, the US will reply to the LoR with a letter of offer and acceptance (LoA).

After that, India will deliberate with the US by considering the offers made in terms of price and conditions, before finalizing the agreement through the contract negotiation committee and seeking approval from the cabinet committee on security headed 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 would build a comprehensive global MRO (maintenance, repair, and overhaul) facility in India to serve that nation's long-term objective of boosting domestic defense capabilities. The requirement for drones obtained will depend on the operational needs of the armed forces.

Government officials have defended the deal, highlighting that India seeks to negotiate a reasonable agreement with the US that encourages the transfer of crucial technologies and ensures transparency despite concerns being raised by the opposition regarding acquisition procedures, cost, self-reliance in defence, and technology transfer. The Navy will receive 15 of the 31 drones, and the Indian Army and Indian Air Force will each receive 8 drones.

Ten drones are anticipated to be purchased as ready-made units. The rest of the 21 drones will be put together in India. Logistical support, weapons, necessary equipment, ground control stations, and sensors are all included in the deal's estimated cost. India will attempt to double the present offering to 15-20% from 8-9% in order to increase the percentage of technology transfer.

The adaptable MQ-9B platform can perform tasks including electronic warfare, airborne early warning, and defensive counter-air in addition to carrying out surveillance, and reconnaissance (ISR) as well as intelligence activities. The number of drones to be procured was determined by a scientific analysis that took into account the needs of the three services as well as India's maritime borders and large land.