The Defence Acquisition Council (DAC), led by Rajnath Singh, has recently approved a major ₹30,000 crore contract to procure 87 Medium Altitude Long Endurance (MALE) drones for the Indian armed forces, marking a pivotal step in unlocking and scaling the indigenous UAV manufacturing ecosystem in India, reported Manu Pubby of ET News.

Crucially, the contract will be split between the two lowest bidders in a 64:36 ratio, ensuring that two separate manufacturing lines are established. This approach provides flexibility for ramping up production swiftly as well as supports future export potential.

The drones procured will serve diverse roles including reconnaissance, electronic warfare, and precision missile strikes. The Defence Ministry mandates comprehensive local manufacturing to deepen the domestic defence industrial base — this includes production of Aero-Structures, main parts, assembly and testing of drone engines in India, and indigenisation of critical components such as electro-optical payloads and satellite communication systems. Additionally, indigenous navigation and communication systems must be integrated to secure supply chain stability and operational security.

The armed forces will soon issue an Expression of Interest (EOI) inviting Indian companies to submit bids, followed by trials and commercial negotiations. Among likely contenders are firms like Adani Defence (which has previously supplied Israeli-origin Hermes 900 drones), Solar Defence and Aerospace with its Nagpur manufacturing setup, Raphe Mphibr with indigenous drone designs, Tata Advanced Systems Limited, and potentially Hindustan Aeronautics Limited possibly in collaboration with an Israeli partner.

This initiative aligns with India’s broader ambition to establish itself as a global drone manufacturing hub, backed by government policies, incentives, and a growing drone startup ecosystem. By fostering competition between two major manufacturers and emphasising indigenisation, the program aims to ensure self-reliance, technological advancement, and strategic autonomy in the UAV domain while creating a robust defence industrial ecosystem capable of meeting escalating military and export demands.

This ₹30,000 crore MALE drone deal is a transformative move to unlock and sustainably scale UAV production capacity in India through competitive bidding, contractual assurances on local manufacturing, and investment in indigenous innovation and supply chain security.

Based On ET News Report