Defence Ministry Clears Rs 30,000 Cr UAV Deal for Local Production

• ₹30,000 crore contract approved for 87 indigenously made MALE drones shared by two firms
• Order split 64:36, with separate production units for scalability and exports
• Local manufacturing of key components ensures supply chain security

The recent approval of a contract for long-range drones worth ₹30,000 crore by the Defence Ministry is expected to uplift India's UAV manufacturing industry. The order will be shared by two manufacturers, who will be setting up separate facilities to take care of future scaling and exporting.

The Defence Acquisition Council (DAC) met under the chairmanship of Defence Minister Rajnath Singh and approved procurement of 87 indigenous MALE (Medium Altitude Long Endurance) drones used for reconnaissance, electronic warfare and precision strike missions.

The armed forces will issue a notice of interest to Indian firms, allowing them to submit bids; this will be followed by trials and commercials negotiations.

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According to sources, the DAC agreed to split the contract between the two lowest bidders at a ratio of 64:36, with the higher amount going to the primary contractor. This dual-source agreement will establish two MALE drone manufacturing hubs in India so that production can scale narrowly and quickly when required.

The selected firms must commit to local manufacture of aerostructure and primary takes, and the engines must be assembled and proven in India.

Likewise, critical systems, including the electro-optical payloads and the satellite communications kit must be manufactured in India to ensure security of supply chain and reliability in operations, while reinforcing the nation's home-grown capability and self-sufficency in advanced defence capability.