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US Quoted Higher Price to India for Selling Drones: Congress Party

© The Mitchell Institute for Aerospace Studies MQ-9 Reaper
MQ-9 Reaper - Sputnik India, 1920, 28.06.2023
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India’s Defense Acquisition Council (DAC), chaired by Defense Minister Rajnath Singh, gave its approval for the Predator drone deal on June 15 in the lead-up to Prime Minister Narendra Modi’s state visit to the US.
India’s main opposition Congress party has said that the US quoted a higher price to India for selling 31 MQ-9B surveillance drones, or ‘Predators’ while selling these Unmanned Aerial Vehicles (UAVs) at a lower price to other countries in the past.
The drones are manufactured by the American firm General Atomics (GA).

“Other countries are buying the same drones at less than a fourth the price (which has been quoted to India). India is buying 31 Predator drones for $3 billion. We are buying every drone for INR 880 crores ($107 million),” Congress spokesperson Pawan Khera stated at a press briefing in New Delhi on Wednesday.

Khera also sought to know from the government if the US had agreed to New Delhi’s demand for ‘transfer of technology (ToT)’ in the deal.
The Congress party spokesperson claimed that New Delhi would get only “8-9 percent” of the technology from the US under the present arrangement.
The proposed acquisition of the MQ-9B drones by New Delhi figured into the India-US joint statement released after the summit-level talks between Prime Minister Narendra Modi and US President Joe Biden at the White House last week.
MQ-9B SeaGuardian - Sputnik India, 1920, 15.06.2023
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Ahead of Modi Visit, Indian Defence Ministry Clears Billion-Dollar Drone Deal With US
New Delhi will procure the MQ-9B drones, which will be assembled in India.

“As part of this plan, General Atomics will also establish a Comprehensive Global MRO (Maintenance, Repair and Operations) facility in India to support India’s long-term goals to boost indigenous defense capabilities,” said the India-US joint statement.

Khera further questioned the apparent delay in the drone deal being approved by the Cabinet Committee on Security (CCS), which is chaired by Prime Minister Modi.

India Still ‘Negotiating’ the $3 Billion Deal

The charges by India’s main opposition party surfaced just days after the Indian Defense Ministry said in a statement that New Delhi would “negotiate” the price of the drone deal.
The statement, released on Sunday, said that a Letter of Request (LoR) outlining the requirements of the Indian forces and the “terms of the procurement” would be sent to Washington in the coming days.
The Defense Ministry said that the Letter of Offer and Acceptance (LOA) will be eventually finalized by the American and Indian authorities.
The final approval of the deal will be given by the CCS.
The Defense Ministry said that 15 of the 31 drones proposed to be acquired from the US will be inducted into the Indian Navy.
It said that eight drones will be inducted into the Indian Air Force (IAF), while the Indian Army will manage the remaining eight drones.
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