{"id":11888,"date":"2026-08-22T06:01:37","date_gmt":"2026-08-22T00:31:37","guid":{"rendered":"https:\/\/55nda.com\/blogs\/anil-khosla\/?p=11888"},"modified":"2026-08-21T16:18:18","modified_gmt":"2026-08-21T10:48:18","slug":"839-explained-why-lease-when-you-are-buying-them","status":"publish","type":"post","link":"https:\/\/55nda.com\/blogs\/anil-khosla\/2026\/08\/22\/839-explained-why-lease-when-you-are-buying-them\/","title":{"rendered":"839: EXPLAINED: WHY LEASE WHEN YOU ARE BUYING THEM"},"content":{"rendered":"<p>&nbsp;<\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 18pt; color: #008000;\">Inputs to questionnaire from journalists<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 14pt; color: #003366;\">India has operated leased SeaGuardians since 2020. India leased them because the Navy needed persistent ISR capability while the much larger procurement moved through the system. The Indian Navy has found them useful and has flown them for thousands of hours.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 14pt; color: #003366;\">The new lease contract has reportedly been signed on17 August 2026. It includes a 30-month lease for two MQ-9B Sea Guardian drones from General Atomics Aeronautical Systems. The contract is valued at approximately \u20b91,943 crore.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 14pt; color: #800000;\">On the face of it, \u20b91,943 crore for two MQ-9B SeaGuardians for only 30 months looks extremely expensive. The \u20b91,943 crore price tag is not a basic rental fee for two airframes. It represents a Company-Owned, Company-Operated (COCO) capability package. The value proposition includes sensors, communications, ground-control infrastructure, technical support, maintenance, operators\/support personnel, availability, etc.<\/span><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul style=\"text-align: justify;\">\n<li><span style=\"font-family: arial, helvetica, sans-serif; font-size: 14pt; color: #800000;\"><u>Complete Operational Burden<\/u>. General Atomics (GA-ASI) provides the entire ecosystem (possibly including Ground Control Stations (GCS), satellite communication bandwidth, continuous payload integration, spare parts, and on-site engineering support).<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul style=\"text-align: justify;\">\n<li><span style=\"font-family: arial, helvetica, sans-serif; font-size: 14pt; color: #800000;\"><u>Assured Flight-Hours.<\/u> The cost includes availability of a guaranteed number of operational flight hours. The manufacturer would bear the cost associated with airframe degradation, maintenance cycles, component failures, and logistics overhead.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul style=\"text-align: justify;\">\n<li><span style=\"font-family: arial, helvetica, sans-serif; font-size: 14pt; color: #800000;\"><u>Specialised Payload Rent<\/u>. The lease includes high-end, mission-specific sensor suites (360-degree maritime surface search radars, synthetic aperture radars (SAR), electro-optical\/infrared (EO\/IR) balls, and signals intelligence (SIGINT) packages).<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 14pt; color: #000080;\">The lease would buy time and capability. \u00a0India entered into the agreement in October 2024 for 31 MQ-9Bs (specifically 15 SeaGuardians and 16 SkyGuardians). India&#8217;s acquisition of 31 aircraft does not mean they will become operational right away; reports indicate the first deliveries will not take place until late 2028 or early 2029. Since we need the capability right now, there will be a gap of several years. To sum up, the purchase is the long-term solution, while the lease is a short-term remedy.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 14pt; color: #000080;\">There&#8217;s another way of looking at it. The lease would be a training and transition bridge. The new lease could allow personnel, maintenance teams, operators and mission planners to continue building experience while the larger fleet is inducted. It would allow operational availability, training, experience, maintenance support, sensors, contractor support, insurance\/replacement risk, and immediate access. Rather than a redundant expense, the lease would serve as a high-readiness bridge. It would provide immediate maritime surveillance capacity while laying the tactical groundwork for the larger fleet&#8217;s arrival.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 14pt; color: #993300;\">In short, the two newly leased Sea Guardians are not a standalone act but a deliberate interim measure that keeps the Navy\u2019s IOR surveillance posture strong and operationally continuous while the larger, permanent 31-aircraft tri-service fleet is manufactured and delivered.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 14pt;\"><strong><u>The bigger picture<\/u><\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 14pt;\">The drones complement, rather than replace, the P-8I fleet. India&#8217;s surveillance architecture is increasingly layered:<\/span><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul style=\"text-align: justify;\">\n<li><span style=\"font-family: arial, helvetica, sans-serif; font-size: 14pt;\"><u>MQ-9B SeaGuardian<\/u>: long-endurance unmanned surveillance, able to remain on station for extended periods.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul style=\"text-align: justify;\">\n<li><span style=\"font-family: arial, helvetica, sans-serif; font-size: 14pt;\"><u>P-8I Poseidon<\/u>: manned long-range maritime patrol aircraft with sophisticated radar and anti-submarine warfare capabilities.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul style=\"text-align: justify;\">\n<li><span style=\"font-family: arial, helvetica, sans-serif; font-size: 14pt;\"><u>Satellites<\/u>: wide-area, space-based observation.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul style=\"text-align: justify;\">\n<li><span style=\"font-family: arial, helvetica, sans-serif; font-size: 14pt;\"><u>Coastal and island-based sensors\/radars<\/u>: persistent monitoring closer to shore and around strategic maritime chokepoints.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul style=\"text-align: justify;\">\n<li><span style=\"font-family: arial, helvetica, sans-serif; font-size: 14pt;\"><u>Other naval assets<\/u>: ships, submarines and aircraft that can investigate or act on information generated by the surveillance network.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 14pt;\"><u>A layered network<\/u>:<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 14pt;\">Satellites \u2192 see broadly<\/span><br \/>\n<span style=\"font-family: arial, helvetica, sans-serif; font-size: 14pt;\">\u2193<\/span><br \/>\n<span style=\"font-family: arial, helvetica, sans-serif; font-size: 14pt;\">MQ-9Bs \u2192 stay over an area for a long time.<\/span><br \/>\n<span style=\"font-family: arial, helvetica, sans-serif; font-size: 14pt;\">\u2193<\/span><br \/>\n<span style=\"font-family: arial, helvetica, sans-serif; font-size: 14pt;\">P-8Is \u2192 investigate and conduct sophisticated maritime\/ASW missions.<\/span><br \/>\n<span style=\"font-family: arial, helvetica, sans-serif; font-size: 14pt;\">\u2193<\/span><br \/>\n<span style=\"font-family: arial, helvetica, sans-serif; font-size: 14pt;\">Ships\/submarines \u2192 physically respond.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 14pt;\">The MQ-9B lease fits into that picture as the tactical, tasking-responsive layer of a system whose outer layers are space-based sensing and coastal radar, and whose command layer is the fusion-centre network.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/youtu.be\/TB_DEgs3wAw?si=2vA0yWdNV4G-XLYD\"><span style=\"font-size: 14pt; color: #800080;\">Link to the report on Wion TV:-<\/span><\/a><\/p>\n<p style=\"text-align: justify;\"><a href=\"https:\/\/youtu.be\/TB_DEgs3wAw?si=2vA0yWdNV4G-XLYD\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-11890\" src=\"https:\/\/55nda.com\/blogs\/anil-khosla\/wp-content\/uploads\/2026\/08\/wion.png\" alt=\"\" width=\"1990\" height=\"1138\" srcset=\"https:\/\/55nda.com\/blogs\/anil-khosla\/wp-content\/uploads\/2026\/08\/wion.png 1990w, https:\/\/55nda.com\/blogs\/anil-khosla\/wp-content\/uploads\/2026\/08\/wion-300x172.png 300w, https:\/\/55nda.com\/blogs\/anil-khosla\/wp-content\/uploads\/2026\/08\/wion-1024x586.png 1024w, https:\/\/55nda.com\/blogs\/anil-khosla\/wp-content\/uploads\/2026\/08\/wion-768x439.png 768w, 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data-gradient-check=''        data-gradient-dir='to bottom'        data-gradient-c1='#103251'        data-gradient-c2='#607593'        data-hide-bg-image-def-color='#FBFEF9'        data-show-social=''        class='box-apm  voting-poll ays-poll-id-6a8e8ed393aa2 '        id='ays-poll-id-6a8e8ed393aa2'        data-res='0'        data-res-sort='none'        data-restart ='false'        data-redirection = '0'        data-redirect-check = '0'        data-url-href = ''        data-href = ''        data-delay = '0'        data-id='2'        data-res-rgba = ''        data-percent-color = '#0C6291'        data-enable-top-animation = ''        data-top-animation-scroll = '100'        data-info-form=''        data-enable-social-links=''        ><span class='ays_poll_passed_count'><i class='ays_poll_fa ays_poll_fa-users' aria-hidden='true'><\/i> 2018<\/span><div class='ays_poll_cb_and_a'><\/div><div class='apm-title-box'><div>Default rating<\/div><\/div><div class='ays-poll-id-6a8e8ed393aa2 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All copyrighted material belongs to the respective owners and is provided only for wider dissemination.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; Inputs to questionnaire from journalists &nbsp; India has operated leased SeaGuardians since 2020. India leased them because the Navy needed persistent ISR capability while the much larger procurement moved through the system. The Indian Navy has found them useful and has flown them for thousands of hours. 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