A number of private sector firms are vying for the high-tech project as part of India's ambitious aim to build domestic stratospheric airships capable of conducting ongoing surveillance and intelligence collecting missions.
Under the direction of the Indian Air Force's (IAF) Directorate of Operations (Remote), the project will involve government funding for chosen partners to create a prototype airship capable of conducting optical surveillance, electronic intelligence gathering, and long-range communications at altitudes greater than 20 km.Up to 70% of the research and development expenses for the Air Ship-based High Altitude Pseudo Satellite (AS-HAPS) project can be funded by the government under the Make I procurement method.
The project, which is estimated to cost Rs 15,000 crore in total, including research expenditures and the purchase of an undetermined number of units, was approved by the powerful Defence Acquisition Council (DAC) in February. In tandem, a plan to create fixed wing High Altitude Pseudo Satellites (HAPS) that can launch from the ground and perform long-range missions has also been started by the defense ministry.

According to sources, a number of Indian aerospace companies have been contacted about the ambitious project. At least two developmental partners will be chosen based on the technical and financial capabilities of the responders.
The AS-HAPS is intended to function as a platform between low earth orbit satellites (500-2,000 km) and high altitude drones (working at about 12 km). Additionally, it would allow data to be transmitted from networks on the ground to satellites. In order to provide persistent intelligence, the systems would need to run for months at a time.

The airship will be outfitted with a variety of sensors, such as radars and optical devices, to provide long-range monitoring. Additionally, the government is eager to develop the sensors domestically. Additionally, it should be able to direct to regions of interest and be controlled while in flight.
The government money is expected to spark a fierce competition to participate in the high-tech developmental project, even though no private sector company in India has yet to show the technology. The system has been tested in flight by the Defence Research and Development Organization (DRDO), which launched an airship carrying an instrumentation payload at a height of about 17 kilometers. In May 2025, the test was conducted throughout Madhya Pradesh.

Global Initiatives
Numerous attempts have been made worldwide to create such systems, but they have been thwarted by exorbitant costs and engineering challenges.
Currently in the prototype and demonstration stages is Europe's cooperative EUROHAPS project. The Stratobus is being developed by Thales Alenia, with a completion date of the early 2030s.
Although the US has created and tested high-altitude airships, no known operational system is currently in use.
Although there is a very active program for high altitude airships, China's advancements are still shrouded in secrecy. Chinese high-altitude balloons have already been seen over India and other parts of the world. Around 20 kilometers over the United States, a high-altitude balloon was shot down.