India and US Finalize $3.81 Billion Deal for Predator Drones to Boost Defense Capabilities

Team Finance Saathi

    16/Oct/2024

What's covered under the Article:

India and the US are finalizing a $3.81 billion deal to acquire 31 Predator drones and establish a maintenance facility.

The agreement aims to enhance the surveillance capabilities of the Indian armed forces across Army, Navy, and Air Force.

Senior officials from both nations will attend the signing ceremony, marking a significant step in defense collaboration.

In a landmark development for India-US defense relations, both countries are set to sign a deal worth US$ 3.81 billion (Rs. 32,000 crore) to acquire 31 Predator drones. This agreement, which could potentially rise to US$ 4.11 billion (Rs. 34,500 crore), is designed to significantly enhance the surveillance capabilities of the Indian armed forces.

The deal involves the procurement of MQ-9B drones, which will be distributed strategically across the three military branches: 15 drones allocated to the Navy, and 16 drones split equally between the Army and Air Force. The Cabinet Committee on Security (CCS) approved this initiative last week, marking a crucial step in bolstering India's defense infrastructure. The procurement will take place under a government-to-government agreement between India and the United States, reflecting the deepening strategic ties between the two nations.

Two separate contracts will be signed during the ceremony, one for the drones and another for the Maintenance, Repair, and Overhaul (MRO) facility that will be established in India. This facility is expected to enhance India's self-reliance in drone maintenance, enabling the Indian military to sustain and support its UAV fleet more effectively. Senior defense officials from both nations, along with a delegation of military and corporate representatives from the US, will be present at the signing ceremony.

The deal received final approval after a Defence Acquisition Council meeting and needs to be finalized by October 31 to remain within the validity period of the American offer. The MQ-9B drones will be stationed at four key locations across India: INS Rajali near Chennai, Porbandar in Gujarat, and Sarsawa and Gorakhpur in Uttar Pradesh.

Currently, the Indian Navy operates two leased Predator drones; however, one was recently lost in an accident, necessitating a replacement that is expected soon. The manufacturer of the MQ-9B drones, General Atomics, has collaborated with Bharat Forge, an Indian company, to produce UAV components locally and is planning to establish a global MRO hub in India. This collaboration marks a significant step toward enhancing India's indigenous defense capabilities.

While India has shown interest in exploring technology transfer options for unmanned combat aerial vehicles (UCAVs), discussions on this front did not yield an agreement. Nevertheless, the current deal is expected to pave the way for further collaboration in defense technology and equipment between India and the US.

This acquisition of Predator drones symbolizes a substantial enhancement in India's aerial surveillance and reconnaissance capabilities, providing the Indian military with advanced technology to address various security challenges. The ongoing collaboration between India and the United States in the defense sector not only underscores the importance of strategic partnerships but also represents a commitment to fostering peace and stability in the region.

For the latest updates on defense initiatives and other significant news, explore the best IPOs to apply now and stay informed about financial developments at Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance Saathi. Also, keep up with Top News Headlines - Share Market News, Latest IPO News, Business News, Economy News- Finance Saathi.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst & Finance Saathi Telegram Channel for Regular Share Market, News & IPO Updates.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Related News
onlyfans leakedonlyfan leaksonlyfans leaked videos