Update On MQ-9B Drone Acquisition From US: Price Negotiations Concluded, Defence Deal Signing Likely Before 31 October

The Defence Ministry plans to sign the deal to buy 31 MQ-9B Guardian armed drones from the United States by 31 October as the price negotiations have reportedly concluded.

The Defence Acquisition Council (DAC) approved the predator drone deal on 30 July. Then the Cost Negotiation Committee (CNC) arrived at a final price of $3.1 billion for the acquisition.

Now, the Defence Ministry has approached the Finance Ministry for the budget approval. The acquisition from US-based General Atomics will be finally approved by the Cabinet Committee on Security (CCS).

There is a need to sign the deal before 31 October, otherwise the manufacturer will revise the price. The price quoted by the manufacturer was around $3.9 billion, which has been brought down after negotiations.

Under the deal, India is also asking for a transfer of technology (ToT). Moreover, the drones will be assembled in India, and General Atomics will also open a maintenance, repair, and overhaul (MRO) facility in India.

The forces are looking to induct 10 MQ-9B drones as early as possible, while, the rest of the drones will be delivered in batches every six months.

The MQ-9Bs of the Navy will be based at command and control centers at Arakkonam and Porbandar, very close to the coastline, while the Army and Air Force's MQ-9Bs will cover the Line of Actual Control (LAC).