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Indian Army Picks Tata, Nibe as Lowest Bidders for ₹1600 Crore Loitering Munition Project

Tata Advanced Systems and Nibe Limited have emerged as the lowest bidders in the Indian Army's ₹1,600 crore loitering munition tender. The project will strengthen India's indigenous drone warfare capability.
Indian Army IIT Madras MoU
Indian Masterminds Stories

New Delhi: Indian Army loitering munition tender has moved a step closer to completion, with Tata Advanced Systems Limited (TASL) and Nibe Limited emerging as the lowest bidders. The ₹1,600 crore defence project aims to strengthen the Army’s long-range precision strike capability by procuring indigenous loitering munitions with a range of over 100 km.

Indian Army Loitering Munition Tender: Tata Advanced Systems Emerges as Lowest Bidder

According to defence sources, Tata Advanced Systems (TASL) has secured the L-1 (lowest bidder) position in the tender. The company is expected to supply 64% of the 840 loitering munitions required by the Indian Army’s Artillery under the fast-track procurement process.

Read also: Indian Army Set to Get Advanced Kamikaze Drones as SMPP and KNDS Sign Major Defence Deal

Nibe Limited Likely to Supply Remaining Drones

Nibe Limited has emerged as the L-2 (second lowest bidder) in the competition. If the procurement follows the expected split, Nibe will supply the remaining 36% of the loitering munitions, receiving orders worth nearly ₹600 crore, while Tata’s share could be around ₹1,000 crore.

Indian Army Loitering Munition Tender: Only Three Companies Qualified

The Army’s technical evaluation cleared only three companies:

  • Tata Advanced Systems Limited (TASL)
  • Nibe Limited with its Vayuastra system
  • A-Vision

The Indian Army will now invite the L-1 and L-2 bidders for price negotiations before awarding the final contract.

What Are Loitering Munitions

Loitering munitions, often called kamikaze drones, can stay in the air for a long time while searching for targets. Once a target is identified, the drone attacks it directly with high precision. These systems combine surveillance and strike capabilities, making them valuable in modern warfare.

Indian Army Expanding Drone Warfare Capability

The Indian Army has significantly expanded its drone-based warfare capability in recent years. Dedicated artillery drone batteries and specialised regiments have already been established to improve surveillance and precision strike operations. Officials also plan to induct drones with ranges from 50 km to 1,000 km over the next 12 to 18 months through fast-track procurement.

Another ₹1,500 Crore Indian Army Loitering Munition Tender Expected

Apart from the current project, the Indian Army is preparing another tender worth nearly ₹1,500 crore. The upcoming procurement will involve 36 jet-powered drones, with the contract also expected to be divided between the L-1 and L-2 bidders.

Read also: Explained: What is THONS Loitering Munition and How India Can Become Super Power in Smart Drone-Based Warfare


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