More ‘Ammunition Money’ Will Flow To Indian Companies

In a move aimed at building indigenous capacity and reducing dependence on imports, Prime Minister Narendra Modi’s government has approved manufacturing of eight selected ammunition in-service with the Indian Army by the local industry, the Economic Times has reported.

Private Indian firms had received a request for proposal from the Ministry of Defence earlier this year to supply ammunition. A long-term contract of 10 years has been approved as the manufacturers would need time to set up facilities.

Approval has been granted for 30 mm ammunition used by infantry-carrying vehicles, 125 mm armour piercing types to stop tanks and armoured vehicles and 40 mm grenades that can be launched using machines.

Although players have been allowed bid for any number of ammunition types, not more than three contracts will be awarded to any one manufacturer. To meet the bidding criteria, the companies should not have foreign equity exceeding 49 per cent, and should be owned and controlled by Indian citizens.

In its latest report, the Comptroller and Auditor General of India had pointed out to the lack of adequate stockpile of ammunition and War Wastage Reserve for meeting requirements in the event of a long conflict.