TDS Desk:

Bangladesh is set to sign a government-to-government agreement with China to establish a military drone manufacturing plant, aiming to strengthen the country’s air defence capabilities.

The finance ministry approved the Tk608.08 crore project on 6 January, titled “Establishment of Manufacturing Plant and Transfer of Technology (ToT) for Unmanned Aerial Vehicles (UAVs)”.

Of the total cost, Tk570.60 crore will be paid over four fiscal years for importing and installing the plant and technology, while Tk37.47 crore will cover local expenses such as VAT and LC-related charges.

The project will be implemented by the Bangladesh Air Force with technology supplied by China Electronics Technology Group Corporation (CETC) International, a state-owned Chinese defence electronics company. Officials say the initiative will allow Bangladesh to manufacture and maintain drones domestically, reducing long-term dependence on imports.

Chief Adviser Muhammad Yunus, who oversees the defence ministry, approved the proposal before the finance ministry gave its clearance. The project will be funded from the Bangladesh Air Force’s existing budget, without requiring additional allocations.

Finance Adviser Salehuddin Ahmed declined to comment on the matter, while ISPR officials also refrained from making any statement.

The contract value was reduced from an initial Tk643.61 crore to Tk608.07 crore after negotiations with the Chinese firm. CETC International is a major defence electronics conglomerate whose products are used in more than 110 countries.