Government clears local manufacturing of 8 types of Ammunition

The Centre has approved manufacturing of eight selected ammunition by Indian industry for the Army. A defence ministry statement on Wednesday said this was done with the aim of developing indigenous capacity and reducing dependence on imports.

"As another step in the direction of 'Make in India' in defence sector and to facilitate development of indigenous capacity, reduce import dependence and with the long-term objective of building capacity within the industry as a robust alternative source of ammunition, the government has approved manufacturing of eight selected ammunition for Indian Army by Indian Industry," the statement said.

The eight selected ammunition are in-service. Earlier this year, a request for proposal was issued to selected Indian private firms to supply ammunition.

This includes for 30mm ammunition used by infantry carrying vehicles, 125mm armour piercing types to stop tanks and armoured vehicles and 40 mm grenades that can be machine launched.

Defence minister Nirmala Sitharaman has approved a long-term contract of 10 years with selected ammunition manufacturers as the indigenous producer will need to set up a new establishment.

Individual Indian companies, as per Indian Companies Act, 2013, with foreign equity not exceeding 49%, owned and controlled by Indian citizens, consortium consisting of Indian companies and wholly-owned subsidiary company are eligible to participate.

Companies are allowed to bid for any number of ammunition types. "However, a company will be awarded not more than three contracts," the ministry release said. The prospective manufacturer will also be free to select their technology partners and obtain transfer of technology. Technology partners could be indigenous or foreign manufacturers.

Minister of state for defence Subhash Bhamre said in the Rajya Sabha on Monday "there is adequate stock of ammunition with the Indian Army and it is well equipped for meeting any operational requirements." Recently 19 contracts amounting to Rs 11,739.83 crore were finalised by the Army. A CAG report on the Army and ordnance factories tabled in Parliament on July 21, however, had pointed out that there was no significant improvement in the availability of the War Wastage Reserve ammunition.

WWR needed to fight a full-scale war is still at a critical level, especially for tanks and artillery divisions. WWR is the reserve of ammunition for meeting 40 days of intense war or a full-scale war. Arun Jaitley had told Rajya Sabha on July 25 that the armed forces were sufficiently equipped. He said the CAG report reference was to shortage in ammunition in relation to a point in time.

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