The Ministry of Defence (MoD) has signed contracts worth approximately Rs 1,577 crore with Tata Advanced Systems Limited (TASL) and NIBE Private Limited to supply loitering munition systems, munitions and accessories for the Indian Army. Defence officials described this as the biggest-ever one-time purchase order for drones in Indian military history.

The agreements were inked in New Delhi on August 14 (Friday) in the presence of Defence Secretary Rajesh Kumar Singh. They will be executed under the ‘Buy (Indian)’ category through the Fast Track Procedure to accelerate delivery.

Loitering Munition Deal: TASL gets 64% share as NIBE secures Rs 563 cr rder for 30 systems

The procurement covers 84 sets of loitering munition systems along with 840 loiter munitions and associated accessories, with deliveries to be completed within 12 months from the contract signing date.

The order has been bifurcated between the two vendors: TASL, as the L1 vendor, will supply 54 sets with 540 loiter munitions (64% of the total), while NIBE, as the L2 vendor, will supply 30 sets with 300 munitions (36%). NIBE’s confirmed work order is valued at Rs 563.35 crore for its 30-set tranche, which includes associated testing equipment and accessories.

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Operational impact: Boosting artillery regiments’ precision strike

The Ministry of Defence describes the Loiter Munition System as “critical equipment” designed to enhance the capability of artillery regiments and thereby strengthen the overall operational effectiveness of the Indian Army. In practical terms, these systems—often referred to as “kamikaze” or suicide drones—provide artillery units with extended reach and precision-strike options against high-value, time-sensitive targets, complementing traditional tube and rocket artillery.

According to the MoD’s statement, the newly signed Rs 1,577 crore contracts with Tata Advanced Systems Ltd and NIBE Pvt Ltd will equip the Army’s new Shaktibaan and Divyastra formations with loitering munitions capable of striking targets beyond 100 km, boosting the artillery’s emerging drone-based precision-strike capability.

The ministry explained that these munitions “can be launched towards a target area, remain airborne while searching for or waiting for a target and then dive onto the target,” combining surveillance, target acquisition and strike in a single system to shorten the sensor-to-shooter cycle and allow commanders to engage targets at considerable distances.

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Defence sources told ANI that the tender covers 840 loiter munitions of around 100 km range, with TASL as L1 vendor slated to supply about 64% of the requirement and NIBE the balance, under the ‘Buy (Indian)’ category via the Fast Track Procedure to accelerate delivery. This acquisition sits alongside broader Indian Army and tri-service efforts to field longer-range loitering systems, including the IAF’s procurement of Veda Aeronautics’ Sureshastra Mk1 (150+ km range) and ongoing RFI processes for medium-range naval loiter munitions with ranges up to 1,000 km, reflecting a shift towards deep-strike, one-way attack drones as a core element of India’s future artillery and joint-fire architecture.

‘Buy Indian’ via Fast Track: A self-reliance push

The acquisition is being undertaken under the ‘Buy (Indian)’ category through the Fast Track Procedure (FTP), a route intended to shorten procurement cycles for urgent operational needs while prioritising domestic industry.

The Ministry states that procuring from Indian vendors under FTP will “further strengthen the vision of self-reliance in defence” and serve as a “proud flag-bearer of Aatmanirbhar Bharat.” By routing a Rs 1,577 crore order through Indian firms, the deal is positioned to bolster manufacturing capabilities, deepen the domestic supply chain, and modernise the Indian defence industrial base.

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Defence as fifth ‘Shakti’: From self-reliance to global supplier

Meanwhile, Prime Minister Narendra Modi, in his 80th Independence Day address from the Red Fort, named defence power as the fifth ‘Shakti’ of his ‘Shakti Ki Saptadhara’ vision and called for India to move beyond self-reliance to become a global supplier of advanced military systems. “The fifth strength of the Saptadhara is defence power. It is important for us to become self-reliant in defence. When the world is thinking about itself, India cannot remain merely a market for the world. We have to become global suppliers. We have to take leadership in hypersonic defence technologies,” PM Modi said.

Reiterating the push for an Aatmanirbhar defence sector, the Prime Minister stressed that India must build the capability to design, develop and export next-generation defence technologies instead of remaining only a buyer. His remarks align with the government’s broader strategy to scale up domestic defence production, deepen R&D in areas like hypersonics, missiles and unmanned systems, and position Indian industry as a trusted partner in global defence supply chains.

Strategic push for unmanned warfare

The deal comes as the Army looks to induct tens of thousands of locally made unmanned aerial systems and loitering munitions over the next five years. The move reflects the growing role of unmanned systems in recent conflicts and the need to strengthen surveillance and precision-strike capabilities.

The Rs 1,577 crore contracts with TASL and NIBE will provide an immediate addition to the Army’s artillery capabilities while also increasing demand for domestically produced loitering munitions. The procurement is part of the broader effort to reduce dependence on imported defence equipment and expand local manufacturing.