A team from the United States is currently in India for discussions on the acquisition of MQ-9B drones by the armed forces. The deal, estimated at $3.99 billion, is yet to be finalised as talks on technology sharing continue.
Representatives from General Atomics have been in the national capital to negotiate the acquisition of 31 drones, with 15 designated for maritime roles, The Economic Times reported.
The US government approved the deal in February, increasing its estimated value from $3 billion to $3.99 billion. However, discussions on technology sharing have not yet been finalised.
The Indian armed forces have expressed concerns about recent reports of sophisticated drones being shot down by non-state actors in West Asia. Additionally, India is negotiating for a higher content of the MQ-9B drones to be manufactured locally to bolster efforts in developing indigenous combat drones.
General Atomics enhances India ties
Officials also noted that General Atomics has expressed willingness to manufacture components in India, currently valued at 8-9 per cent of the deal. Efforts are ongoing to increase this to 15-20 per cent.
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General Atomics already has a tie up with Bharat Forge to produce UAV components and has committed to establishing a global maintenance hub for the MQ-9B drones in India. Unlike in previous agreements, where foreign companies had to invest 30 per cent of the contract value in the Indian defence and aerospace industry, offset rules have been waived for government-to-government deals.
Once operational, the MQ-9B drones will be stationed at three planned hubs in India. These include INS Rajali in Tamil Nadu, where two drones leased by the Navy are already operational. Additional hubs are expected to be established in North India and the North East.