A procurement effort by the Indian Army to acquire first-person-view (FPV) drones and loitering munitions has unraveled into controversy after all bidders in both tenders were disqualified in the technical evaluation phase.
According to official procurement documents, a total of 32 companies participated in the tender for 720 FPV drones, while another 14 companies submitted offers for 120 loitering munitions. The tenders, issued as part of India’s push to modernize its unmanned capabilities, were expected to draw competitive bids from both established defense firms and new drone startups.
Instead, the process has stalled amid widespread disqualifications, with every single bidder rejected on technical grounds. Among those disqualified were major names including Adani, Garuda Aerospace, Bharat Forge (BFL), and a range of OEM and startup manufacturers such as DEPL, MIPL, HELL DART, and VTOL Aviation India.
In total, the submitted entries included a wide variety of platforms, from VTOL (Vertical Take-Off and Landing) drones like the AGNIKAA VTOL-1 and VTOL_VLM_X8, to purpose-built kamikaze drones like the AMS-Kamikaze Drone, MIPL/KZDrone/062, and Vajra models.
The tender document, now public, shows that all companies, regardless of turnover status, startup registration, or Military/Defense registration (MII), were deemed non-compliant. Most companies had fulfilled criteria such as registration with designated defense authorities and minimum turnover or MSE (Micro and Small Enterprises) classification. However, none passed the technical validation stage required to advance in the bidding process.
In a statement posted in procurement records, the Army did not disclose specific reasons for the disqualifications, but industry experts have raised concerns about the stringency of evaluation criteria, potential ambiguity in technical specifications, and lack of prior communication with bidders regarding deficiencies.
“Disqualifying 100% of participants signals either an unrealistic specification or a flawed evaluation process,” said one defense procurement analyst familiar with Indian military acquisitions. “It raises red flags not just for domestic industry confidence, but for the broader Make-in-India defense strategy.”
The issue has drawn attention due to the growing strategic role of FPV kamikaze drones and loitering munitions in conflicts around the world, notably in Ukraine, where such systems have been credited with cost-effective precision strikes and battlefield disruption.
As noted by several participating firms, the procurement was viewed as a high-profile opportunity to gain a foothold in India’s expanding unmanned systems market. The Army’s rejection of all bids may trigger a reevaluation of the tender, possible appeals, or direct intervention by India’s Ministry of Defence.