Acquisition Of Armed Drones From US To Begin Next Month: Centre Dismisses Reports On Price Component

India and the US firmed up the drone deal during Prime Minister Narendra Modi's high-profile visit to Washington.

India and the US firmed up the drone deal during Prime Minister Narendra Modi's high-profile visit to Washington.

Source : PTI

New Delhi: Centre will start the formal acquisition process for the 31 MQ-9B long endurance drones from the US through Foreign Military Sale (FMS) route. The Acceptance of Necessity (AoN) included the number of UAVs to be procured along with associated equipment.

The deal is estimated to cost around $3.5 billion or almost Rs 29,000 crore. "However, price will be negotiated once policy approval of the US Government is received," the defence ministry, in a statement, said.

"The Ministry of Defence (MoD) will compare the acquisition cost with the best price offered by General Atomics (GA) to other countries," it stated.

India and the US firmed up the drone deal during Prime Minister Narendra Modi's high-profile visit to Washington.

According to the statement, "Under the FMS route, a Letter of Request (LOR) would be sent to the US Government where Tri-services requirements, details of equipment and terms of the procurement would be included. Based on LOR, the US Government and MoD will finalise the Letter of Offer and Acceptance (LOA) where details of equipment and terms of the procurement would be negotiated and finalised in accordance with the FMS program and the price and terms offered by the US Government and GA to other countries."

The defence ministry, in a statement, described the reports in social media on the price and the terms of purchase relating to the drone deal as "speculative" and said they are being spread with "ulterior motives".

"These are uncalled for, have ulterior motives and aimed at derailing the due acquisition process. Price and other terms & conditions of the purchase are yet to be finalised and subject to negotiations," it said.

"In this regard, all are requested not to spread fake news/misinformation which can have serious impact on the morale of the armed forces and adversely impact the acquisition process," it added.