The comments were made a day after the Congress sought total openness in the multi-billion dollar drone agreement between India and the US, saying that the 31 MQ-9B predator drones were purchased at a higher price.
A senior government official said on Thursday that the average projected cost of the MQ-9B long endurance drones provided by the US to India is 27% less than the price paid by other nations, and that Indian representatives will strive to drop it even more during talks.
The ultimate price would be competitive compared to the prices incurred by other nations, he added, emphasising emphatically that conversations on the pricing issue have not yet started. Only if India requests more features, he added, can the pricing be raised.
The “acceptance of necessity” granted by the Defence procurement Council on June 15 is the most recent formal update on the intended procurement of 31 of these drones. He clarified that the pricing problem is unrelated to this.
According to him, each drone costs $99 million, and the UAE, one of the few nations that has them, paid USD 161 million for each one. According to him, the MQ-9B India is trying to purchase is equivalent to the UAE’s but has a superior configuration.
The UK spent $69 million on 16 of these drones, but they were only “green aircraft” without sensors, weaponry, or certification. He said that 60–70% of the price is made up by features like payloads, censors, and weaponry, adding that even the US bought five of them for USD 119 million each.
The price for India is working out to be cheaper than others because of the scale of the transaction and the possibility that the manufacturer has returned a significant portion of its initial investment from prior sales, the source added on the condition of anonymity.
However, he went on to say that India could have to combine some of its own missiles and radars with these drones, which might result in a price adjustment.
The comments were made a day after the Congress sought total openness in the multi-billion dollar drone agreement between India and the US, saying that the 31 MQ-9B predator drones were purchased at a higher price.
According to sources, this claim may have been made in “ignorance”.
In response to allegations that the Air Force had raised certain concerns over the drones, they stated that all three wings of the defence forces—including the Army and the Navy—had expressed their concerns during talks and had endorsed the procurement of the drones.
According to them, India is aiming to transfer 15-20% of its technological know-how, and significant parts and systems including engines, radar processors, avionics, sensors, and software would be produced and imported from this country.
India plans to purchase 11 of these drones off-the-shelf to satisfy its urgent needs after both countries have approved the agreement in principle, and the remaining drones will be put together domestically, according to the officials.
They warned that since the sophisticated weaponry are sure to frighten and worry India’s opponents, there may be attempts to “scuttle” the agreement by spreading misleading information.
These cutting-edge drones would enable India to successfully spy on its adversaries. One of them said, “It will greatly lessen the possibility of our enemies surprising us.”
According to them, these drones would provide India’s military forces better capabilities for monitoring the nation’s land and sea borders.
They said that since the agreement would be between the governments of India and the US, it would undoubtedly be open and equitable.
In what is believed to be a part of his ambitions to make India a centre for drone manufacture, Prime Minister Narendra Modi and the US finalised the drone contract when he was on his high-profile visit to Washington.
The high-altitude long-endurance (HALE) drones can carry four Hellfire missiles and around 450 kg of explosives, and they can stay in the air for more than 35 hours.
General Atomics leased two MQ-9B Sea Guardian drones to the Indian Navy in 2020 for a year of monitoring in the Indian Ocean. After then, the lease’s term was extended.
