Defence Ministry gives nod to Rs 30,000 crore UAV drone deal: Two firms to share contract; local production, exports in focus
NEW DELHI: The defence ministry's recent approval of a Rs 30,000 crore contract for long-range drones is set to revolutionise the UAV manufacturing sector in India, according to Economic Times report.
Two manufacturers will share the order, establishing separate production facilities capable of handling future expansions and export opportunities.
Defence minister Rajanth Singh-led Defence Acquisition Council (DAC) has approved the procurement of 87 indigenously manufactured medium altitude long endurance (MALE) drones. These aircraft will perform various functions including reconnaissance, electronic warfare operations and precision strike missions.
The armed forces will soon issue an expression of interest for Indian companies to participate in the bidding process. Following this, trials will be conducted before proceeding to final commercial negotiations.
According to ET sources, the DAC has determined that the contract should be divided between two competing firms. The total order value, expected to exceed Rs 30,000 crore, will be distributed between the two lowest bidders in a 64:36 ratio, with the primary contractor receiving the larger portion.
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This arrangement will establish two distinct MALE manufacturing facilities in India, allowing for quick production scaling when required. The selected companies must ensure local manufacturing of aerostructures and primary components, whilst engines must be assembled and tested within India. Additionally, critical military components such as electro optical payloads and satellite communications equipment must be produced domestically to ensure supply chain reliability and security.
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