India-US to finalise US$ 3.81 billion (Rs. 32,000 crore) predator drone and MRO facility deal

India and the United States are set to sign a US$ 3.81 billion (Rs. 32,000 crore) deal to acquire 31 Predator drones and establish a Maintenance, Repair, and Overhaul (MRO) facility in India. This deal, which could potentially rise to US$ 4.11 billion (Rs. 34,500 crore), aims to enhance the surveillance capabilities of the Indian armed forces. The MQ-9B drones will be distributed across the Army, Navy, and Air Force, with 15 allocated to the Navy and 16 split equally between the Army and Air Force. Approved by the Cabinet Committee on Security (CCS) last week, the drones will be procured under a government-to-government agreement between India and the US. Two separate contracts, one for the drones and the other for the MRO facility, will be signed today, boosting India’s self-reliance in drone maintenance. Senior defence officials from both nations will attend the signing ceremony alongside a delegation of military and corporate representatives from the US.

The deal received final approval following a Defence Acquisition Council meeting, with the agreement needing to be signed by October 31 to remain within the validity of the American offer. The drones will be stationed at  four locations: INS Rajali near Chennai, Porbandar in Gujarat, and Sarsawa and Gorakhpur in Uttar Pradesh. Currently, the Indian Navy operates two leased Predator drones, though one was recently lost in an accident, with a replacement expected soon. US firm General Atomics, which manufactures the MQ-9B drones, has partnered with Indian company Bharat Forge to produce UAV components in India and plans to set up a global MRO hub in the country. While India explored the technology transfer option for unmanned combat aerial vehicles (UCAVs), no agreement was reached.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.