TATA Advanced Systems and NIBE Limited have emerged as the lowest bidders in the Indian Army’s ₹1,600 crore ($165 million) tender for 840 loitering munitions, marking a major step in India’s push towards indigenous drone warfare capabilities. TATA will supply 64 per cent of the systems, while NIBE will deliver the remaining 36 per cent.

The Indian Army recently opened price bids for its tender to acquire loitering munitions with ranges exceeding 100 kilometres under fast-track procurement procedures. Out of the three vendors that cleared technical evaluation—TATA Advanced Systems, NIBE Limited, and A-Vision—TATA Advanced Systems was declared the lowest bidder (L-1), securing the majority share of the contract. 

NIBE Limited, which fielded its Vayuastra system based on Israeli Skystriker drones, was ranked second (L-2) and will supply the rest.

Under this arrangement, TATA Advanced Systems is expected to receive orders worth around ₹1,000 crore, while NIBE Limited’s share will be approximately ₹600 crore. The Indian Army will now invite both companies for price negotiations before finalising the deal. This procurement is part of the Army’s broader modernisation drive aimed at strengthening its artillery regiments with advanced drone warfare capabilities.

The Regiment of Artillery has already undergone significant transformation, with the raising of specialised drone units such as the Shaktibaan regiments, Divyastra batteries, and Bhairav battalions. These formations are dedicated to drone warfare and precision strikes against enemy targets.

The induction of loitering munitions will further enhance their ability to conduct long-range surveillance and precision attacks in contested environments.

Loitering munitions, often described as “suicide drones,” combine the features of a drone and a missile. They can loiter over a battlefield, identify targets, and strike with high accuracy. The systems being procured are expected to have ranges of over 100 kilometres, giving the Army the ability to engage targets deep inside enemy territory. Trials of NIBE’s Vayuastra have already demonstrated capabilities such as abort-and-reattack manoeuvres, night strikes using infrared cameras, and high-altitude endurance above 14,000 feet.

The Indian Army’s procurement plan is ambitious. Estimates suggest that the force intends to acquire around one lakh drones for varied operational roles, ranging from short-range tactical systems to long-range strike platforms.

The Artillery Directorate is expected to induct drones with ranges between 50 kilometres and 1,000 kilometres over the next 12 to 18 months under fast-track procedures. Additionally, the Army is preparing to float a separate tender for 36 jet-powered drones worth ₹1,500 crore, which will also be split between the lowest bidders.

This development underscores India’s growing emphasis on indigenous defence production and rapid deployment of advanced technologies. TATA Advanced Systems, with its established track record in aerospace and defence manufacturing, and NIBE Limited, with its innovative loitering munition designs, are both set to play pivotal roles in shaping the Army’s future drone warfare capabilities.

The deal also reflects the Army’s determination to adapt to next-generation warfare, where unmanned systems are expected to dominate the battlefield.

The procurement of 840 loitering munitions worth ₹1,600 crore is not just a contract but a strategic milestone. It signals India’s readiness to integrate advanced drone systems into its operational doctrine, enhancing deterrence and combat effectiveness along its borders.

Agencies