TASL, NIBE bag ₹1,577-crore Army contracts for loiter munitions
Contracts worth approximately ₹1,577 crore were signed for the supply of Loiter Munition Systems, along with associated munitions and accessories, for the Indian Army
The contracts were awarded to two Indian companies, along with associated munitions and accessories
The signing took place in New Delhi in the presence of the Defence Secretary
The procurement was processed under the "Buy (Indian)" category through the Fast Track Procedure (FTP)
The acquisition is intended to strengthen the Army's precision strike and artillery capabilities
Loiter Munitions ("Kamikaze Drones") — Technology and Doctrine
A loiter munition (also called a "suicide drone" or "kamikaze drone") is an unmanned aerial system that combines the surveillance capability of a drone with the destructive payload of a munition. Unlike a conventional missile with a fixed flight path, a loiter munition can hover or circle ("loiter") over a target area, use onboard sensors to identify and track a target, and then dive into it to detonate — functioning as both a reconnaissance asset and a precision-guided weapon in a single platform.
Key Details
- Distinguished from a standard drone (reusable, payload-delivering or ISR platform) and a cruise missile (single flight profile, no loiter/search capability) by its "search, detect, and destroy" loop with a human/AI-assisted decision point before impact
- Typically launched via a canister or catapult, carry a small warhead, and are used against time-sensitive or mobile targets such as artillery, air defence radars, and armoured columns
- Widely publicised use in recent conflicts (e.g., Nagorno-Karabakh, Russia-Ukraine) demonstrated their cost-effectiveness against far more expensive armour and air-defence systems, driving global and Indian procurement interest
- India's armed forces have been inducting indigenous loiter munitions to reduce dependence on imported systems and to equip artillery regiments with organic precision-strike capability
This procurement adds indigenously built loiter munitions to the Army's inventory, reflecting a broader shift in artillery doctrine toward networked, sensor-to-shooter precision strike systems rather than purely area-fire weapons.
"Buy (Indian)" Category and Fast Track Procedure under DAP 2020
Defence procurement in India is governed by the Defence Acquisition Procedure (DAP) 2020, which lays down a hierarchy of acquisition categories in order of preference to promote indigenisation. "Buy (Indian)" requires the platform to be manufactured by an Indian vendor, with a minimum indigenous content threshold, though the design need not necessarily be Indian (distinguishing it from the higher-preference "Buy (Indian-IDDM)" category, which mandates indigenous design, development and manufacture).
Key Details
- DAP 2020 category preference order: Buy (Indian-IDDM) > Buy (Indian) > Buy and Make (Indian) > Buy and Make > Buy (Global-Manufacture in India) > Buy (Global)
- The Fast Track Procedure (FTP) is a special provision under the DAP meant to meet urgent operational requirements of the armed forces, allowing compressed timelines compared to the standard capital acquisition process
- Capital acquisition proposals originate as a Services Qualitative Requirement (SQR), progress through Acceptance of Necessity (AoN) by the Defence Acquisition Council (DAC), and culminate in a contract following trials and price negotiation
- The Defence Acquisition Council (DAC), chaired by the Raksha Mantri (Defence Minister), is the apex body that accords Acceptance of Necessity for capital procurement
Routing this contract through "Buy (Indian)" under the Fast Track Procedure signals both an urgency to field the capability quickly and a policy preference for domestically manufactured systems, consistent with the indigenisation hierarchy set out in DAP 2020.
Artillery Modernisation and Precision Strike Capability
Loiter munitions are being inducted as part of a wider modernisation of Indian Army artillery, which has historically relied on towed and self-propelled guns for area fire. Precision loitering munitions extend the artillery arm's ability to strike specific high-value targets — such as enemy artillery positions, radars, and armour — beyond the line of sight, without committing a manned aircraft or a more expensive missile.
Key Details
- Complements other recent artillery inductions such as the K9 Vajra self-propelled howitzer and the Dhanush towed gun system, which address volume/area fire, while loiter munitions address precision point targets
- Reduces collateral risk and ammunition expenditure compared to unguided artillery fire for high-value, time-sensitive targets
- Fits within the Army's broader "network-centric warfare" push, integrating drones, loiter munitions, and surveillance systems into a common targeting loop
The contract signed here equips Army artillery regiments with an organic, precision-strike loitering capability, reducing reliance on higher-echelon assets (air force strikes or long-range missiles) for engaging point targets identified in real time.
- Contract value: approximately ₹1,577 crore
- Procurement category: Buy (Indian), processed through the Fast Track Procedure (FTP) under DAP 2020
- Signing venue: New Delhi, in the presence of the Defence Secretary
- DAP 2020 preference order (highest to lowest): Buy (Indian-IDDM) > Buy (Indian) > Buy and Make (Indian) > Buy and Make > Buy (Global-Manufacture in India) > Buy (Global)
- Apex procurement approval body: Defence Acquisition Council (DAC), chaired by the Raksha Mantri