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‘Fake news aimed at derailing the deal’: Defence Ministry refutes claims that MQ-9B drone deal with US is worth $3 billion, says price not finalised yet

"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,” the ministry said.

Among the many important deals announced during PM Narendra Modi’s just-concluded visit to the US was the deal to purchase the MQ-9B drone. India is purchasing 31 drones made by General Atomics, 16 Sky Guardian and 15 Sea Guardian variants. While reporting the government-to-government, several media reports said it is worth $3 billion. However, now the defence ministry has refuted this claim and said that an amount has not been announced yet. The ministry also said that such fake claims are being spread to derail the acquisition.

In a statement issued today, the union defence ministry said that the amount $3 billion is only the quoted price by the USA, and it has not been finalised yet. It said that while issuing the Acceptance of Necessity (AoN) on June 15 for the deal, the Defence Acquisition Council (DAC) noted the estimated cost of 3,072 million US dollars provided by the US Government, but it has not been accepted and finalised.

“However, price will be negotiated once policy approval of the US Government is received,” the ministry stated. The statement said that the Ministry of Defence will compare the acquisition cost with the best price offered by General Atomics to other countries. The procurement is in progress and would be completed as per the laid down procedure, the statement added.

India is purchasing the drones through Foreign Military Sale route, and a Letter of Request (LOR) would be sent to the US Government under it. The LOR will contain requirements of the Tri-services, details of equipment and terms of the procurement. 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 ministry stated that some speculative reports emerged in sections of social media referring to the price and other terms of purchase. “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,” the ministry added.

In this regard, all are requested not to spread fake news/misinformation which can have a serious impact on the morale of the Armed Forces and adversely impact the acquisition process, the ministry added in its statement.

General Atomics MQ-9 Reaper, also known as Predator B, is a High Altitude Long Endurance (HALE) Remotely Piloted Aircraft System (RPAS), developed by General Atomics Aeronautical Systems. Originally developed for intelligence gathering, reconnaissance and surveillance, it is also used for offensive purposes as it can carry guns, bombs and missiles.

The air force version of the drone is called SkyGuardian, and its maritime version is called SeaGuardian. India Navy already operates two MQ-9B SeaGuardian drones, taken on lease. Now as part of the deal, 16 SkyGuardian and 15 SeaGuardian drones will be acquired.

According to a Wall Street Journal report, some of the drones will be assembled in India, and some of them will be armed. It is notable that India is planning to buy the Hellfire missile, and the drone can carry this missile, therefore, it is possible for the drones to be armed with the Hellfire missile.

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