The ongoing war in West Asia may cause a delay to India's plan to equip the armed forces with 87 Medium Altitude Long Endurance (MALE) drones under a ₹30,000-crore procurement programme.
According to media reports, two Israeli defence companies, Elbit and Israel Aerospace Industries (IAI), which are taking part—as partners with Indian firms—in the bid for the supply of the drones, sought an extension to submit the bids.
These two are the primary foreign contenders, partnering with Indian firms to bid for the contract. They are expected to supply the core designs and know-how for the drones that will be built in India.
A print report, in December, had said the request for proposal (RFP) for MALE was received from multiple bidders, some of whom have tied up with these Israeli firms—HAL and ELCOM with IAI and Adani Aerospace and Defence with Elbit.
An Economic Times report said an extension of two months for the submission of bids has been granted following requests citing the ongoing conflict in West Asia.
While bids were originally due by March 27, participating companies now have until the end of May to respond.
More than 10 companies are expected to respond to the tender that was issued in November. Some of these companies have already announced partnerships with foreign players in the US and Europe as well.
The order will be split in a 64:36 ratio, with the lowest bidder receiving the larger share.
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The decision to divide the order is aimed at establishing two separate Indian manufacturing lines, allowing production to be scaled up at short notice if required.
The selected companies will also receive a 10-year maintenance contract, say media reports.
