India to ink Rs 7800210000 deal with US to produce....; new product to help in special operations

India is closer to securing a groundbreaking agreement with US-based defence tech company, Shield AI to receive and manufacture US’ V-BAT combat drones in India, arking a unique instance of technology sharing in India's defense sector. Mint reported that soon after Operation Sindoor, India initiated a USD 4.5 billion emergency procurement programme under which the said deal will be made. The deal will be executed soon as the Defence Ministry has reached advanced stage of talks to transfer the enhanced V-BAT drones to the Indian Air Force (IAF) and built a made-in-India production unit as part of the joint agreement with JSW Defence, a division of the JSW Group.

The first batch of drones is estimated to be around USD 35 million, which is the limit for emergency procurement contracts. However, the collaboration is made on a big scale with deals involving moves more than just procurement. As part of the collaboration, the companies have signed a USD 90-million (Rs 7,80,02,10,000) joint venture agreement that offers transfer of technology to JSW which includes large-scale local manufacturing, assembly, and testing of the V-BAT system in India.

As part of the JV, JSW Group will invest $90 million over two years, $65 million of which will be deployed in the first 12 months. This will cover the establishment of a global compliance programme, set up manufacturing facilities, and train local manpower to handle the licensed tech. This deal would upgrade India’s defence system and turn the country into a big player in the production of V-BAT.

What is V-BAT Drone?

The V-BAT is a vertical take-off and landing (VTOL) drone which has fixed wings with long endurance capabilities. It excels in intelligence, surveillance, and reconnaissance (ISR) missions, and is designed for tactical deployments in hostile environments, like special forces operations to front-line support for infantry, armoured, and artillery units. Its tube-like design offers a barely logistics footprint and has a quick and flexible deployment. The design is patented.

One signed, the deal would transform India’s approach to defence acquisitions, moving from direct purchase to co-production and home production of advanced weapon systems.