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Defence ministry says attempts being made to derail drone deal with US, ‘price discovery’ yet to be done

While the deal is yet to be inked formally, it was part of the joint statement released following a meeting between PM Narendra Modi and US President Joe Biden this week.

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New Delhi: Stung by a series of messages circulating on social media regarding proposed purchase of what has been termed as “overpriced” MQ-9B drones from the US, the defence ministry hit back Sunday stating that attempts were being made to “derail the deal”.

“Price and other terms and conditions of the purchase are yet to be finalised and subject to negotiations. In this regard, all are requested not to spread fake news/misinformation which can have a serious impact on the morale of the armed forces and adversely impact the acquisition process,” it said in a statement.

The drones are part of the $3 billion deal for 31 High Altitude Long Endurance (HALE) drones between India and the US, which will bring to culmination the Indian military’s long-standing desire to have unprecedented surveillance and attack capability.

While the deal is yet to be inked formally, it was part of the joint statement released following a meeting between Prime Minister Narendra Modi and US President Joe Biden this week.

Under the deal, the Navy will get 15 MQ-9B drones in maritime and anti-submarine warfare kits, while the Army and the Indian Air Force (IAF) will get eight each of the land version.

The joint statement said MQ-9Bs will be assembled in India and will enhance the ISR (intelligence, surveillance and reconnaissance) capabilities of India’s armed forces.

As part of plans, US company General Atomics will establish a Comprehensive Global MRO (Maintenance, Repair and Overhaul) facility in India to support India’s long-term goal to boost indigenous defence capabilities. The firm has a tie-up with India’s Bharat Forge, part of the Kalyani Group, for its drone business.

However, Trinamool Congress leader Saket Gokhale Saturday put out a series of tweets challenging the pricing of the drones.

While the defence ministry did not name Gokhale in its statement, sources in the establishment said his tweet was what led to the ministry’s clarification.

A source told ThePrint: “Price discovery is yet to take place in the system. If one goes by Gokhale’s tweet, one would assume that even the US air force is buying the drone very expensive compared to the UK, which seems to have got it cheaper. The deal with the US is through the government-to-government route, as is usually the case when it comes to key weapon systems.”


Also Read: Why General Electric-HAL deal to manufacture fighter jet engines in India is a big deal


What the ministry said

The defence ministry stated that “the Defence Acquisition Council (DAC) had on June 15, 2023, accorded the Acceptance of Necessity (AoN) for acquisition of 31 MQ-9B (16 Sky Guardian and 15 Sea Guardian) High Altitude Long Endurance (HALE) Remotely Piloted Aircraft Systems (RPAS) for Tri-Services from the US through Foreign Military Sale (FMS) route”.

The AoN included the number of unmanned aerial vehicles to be procured along with associated equipment.

“The AoN noted the estimated cost of 3,072 million US dollars provided by the US Government. However, price will be negotiated once policy approval of the US Government is received. The Ministry of Defence will compare the acquisition cost with the best price offered by General Atomics to other countries. The procurement is in progress and would be completed as per the laid down procedure,” it added.

The ministry clarified that under the FMS route, a Letter of Request (LOR) would be sent to the US government where the tri-services’ requirements, details of equipment and terms of procurement would be included.

Based on the LOR, the US government and ministry of defence will finalise the Letter of Offer and Acceptance (LOA) where details of equipment and terms of the procurement would be negotiated and finalised in accordance with the FMS programme, and the price and terms offered by the US government and General Atomics to other countries, it said.

“Meanwhile, some speculative reports emerged in sections of social media referring to the price and other terms of purchase. These are uncalled for, have ulterior motives and are aimed at derailing the due acquisition process,” the ministry added.

ThePrint had earlier reported about why India was going in for these specialised drones and what the three services aimed to use them for. It was also reported that the air force was initially not on board for the deal, but eventually agreed to it.

(Edited by Nida Fatima Siddiqui)


Also Read: Modi, Biden slam Pakistan’s ‘terror support’ & China’s bullying, support Ukraine’s territorial integrity


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