Up until now, only the state-owned Ordnance Factory Board (OFB) was permitted to produce ammunition and India’s private sector was only allowed to manufacture parts of ammunition such as the shells or fuses. A senior army official stated that the army’s requirements were not being totally met by the OFB, and that import was not an option any more.
Under a new policy, India’s Ministry of Defense is willing to provide long-term commitments and firm orders of multiple types of ammunition to private players, but only at competitive prices, reports DefenseNews.
Bhupinder Yadav, a retired Indian Army major general and defense analyst, said that companies in India will be allowed to manufacture ammunition by forming joint ventures with foreign partners that already have established designs.
Overseas defense companies such as Expal of Spain, Nexter of France, Rosoboronexport of Russia, Chemring Group of the United Kingdom, Saab of Sweden, Elbit of Israel, Rheinmetall Defense of Germany, Diehl Defense of Germany, Denel of South Africa, Yugoimport of Serbia, Bumar of Poland, Orbital ATK Armament Systems of the United States and Arsenal of Bulgaria are negotiating terms with private Indian companies to provide cutting-edge technology for multiple Indian ammunition programs.
Currently, Bharat Forge Limited, is the only private firm in India that has formed a joint venture with Israel’s Elbit Systems to manufacture a variety of ammunition types and smart bombs in India.
