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Unlocking UAV making system: 2 players to get Rs 30,000 crore order

Unlocking UAV making system: 2 players to get Rs 30,000 crore order

Time of India4 days ago
The ₹30,000 crore deal to supply long-range drones to armed forces which has recently been cleared by the
defence ministry
is set to unlock the
UAV manufacturing
ecosystem in the country, with two players set to split the order, creating distinct production lines that can cater for larger orders in the future, besides exports.
Defence Acquisition Council
recently gave the the go-ahead to procure 87
medium altitude long endurance
(MALE) drones that are to be made indigenously. The drones will carry out tasks such as reconnaissance, electronic warfare and precision missile strikes.
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The armed forces will shortly come out with an expression of interest, inviting Indian companies to bid for the contract, after which trials will be carried out before reaching the final stage of commercial negotiations.
Sources said a key decision taken at DAC is to ensure that two of the bidding players get a part of the contract. The final order - estimated to be in excess of ₹30,000 crore - will be split between the two lowest bidders. Sources said the split will be in the 64:36 ratio, with the lowest bidder getting the bigger share.
This would ensure that India would have two separate manufacturing MALE lines, giving the flexibility to ramp up production at short notice if needed. The bidding companies will need to ensure that aerostructures and main parts are made locally and even the engine for the drone is assembled and tested in India. Importantly, even the components for
electro optical payloads
and satellite communications need to be made indigenously, ensuring supply chain stability and security of the most critical military use components.
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