Pvt cos allowed to make ammo for Indian Army
India developing bulk drugs to reduce import dependence DCGI G N SINGH
The defence ministry on Wednesday announced that it has allowed private sector to manufacture eight selected ammunition for the Indian Army in a major reform initiative.
The ministry said the aim of the decision is to facilitate development of indigenous capacity, reduce import dependence and develop a robust supply of ammunition within the country.
“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 defence ministry said. The Army has been reeling under severe shortage of ammunition and it has been pressing the government to address the issue in view of the security challenges the country is facing.
At present, various ordnance factories supply ammunition to the armed forces.
The defence ministry on Wednesday announced that it has allowed private sector to manufacture eight selected ammunition for the Indian Army in a major reform initiative.
The ministry said the aim of the decision is to facilitate development of indigenous capacity, reduce import dependence and develop a robust supply of ammunition within the country.
“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 defence ministry said. The Army has been reeling under severe shortage of ammunition and it has been pressing the government to address the issue in view of the security challenges the country is facing.
At present, various ordnance factories supply ammunition to the armed forces.
The move comes around six months after the government unveiled the ambitious strategic partnership model under which Indian private sector companies will be allowed to form joint ventures with foreign defence majors to build fighter aircraft, helicopters, submarines and main battle tanks in India.
The prospective manufacturer will be free to select their technology partners, negotiate and obtain transfer of technology (TOT). The technology partners could be indigenous or foreign manufacturers.
The defence ministry said the indigenous manufacturer will be required to set up a new establishment to produce the ammunition. It said Defence Minister Nirmala Sitharaman has approved a long term contract of 10 years with the selected ammunition manufacturer, to facilitate a viable commercial model.