Defence ministry inks ₹10,000 crore deals to boost army’s firepower
The area denial munition ordered by MoD has a specialised warhead to deliver a quantum of sub-munitions over a larger area, the ministry said
NEW DELHI: The defence ministry has signed two contracts worth ₹10,147 crore to buy ammunition for the army’s indigenous Pinaka multi-launcher rocket system, in the latest boost for self-reliance in the defence manufacturing sector, it said on Thursday.
The Cabinet Committee on Security cleared the procurement last week.
The contracts were signed with Nagpur-based private firm Economic Explosives Limited and Pune-based Munitions India Limited for area denial munition and enhanced range rockets, respectively, the ministry said.
“The area denial munition has a specialised warhead to deliver a quantum of sub-munitions over a larger area targeting mechanised forces, vehicles and personnel, thereby denying specific areas to the enemy. The rockets have enhanced range to strike deep into enemy territory with precision and lethality,” the ministry said in a statement.
It added that the procurement will mark a significant milestone in the modernisation of the artillery rocket regiments and bolster the army’s firepower.
The Pinaka rocket system was among the weapons and equipment displayed by the army at the 76th Republic Day parade, alongside T-90 tanks, BMP-II Sarath infantry combat vehicles, the BrahMos supersonic cruise missile, the BM-21 Agnibaan multiple-barrel rocket launcher, and the Akash weapon system.
“Beyond enhancing national defence capabilities, these projects have immense potential of direct and indirect employment generation by encouraging the Indian MSME sector through components’ manufacturing. The procurement marks a pivotal step towards modernising India’s defence infrastructure and empowering indigenous industries.” it said.
Munitions India Limited is one of the seven defence companies carved out of the erstwhile Ordnance Factory Board in 2021 as part of the board’s corporatisation. The aim was to boost efficiency and competitiveness in the country’s defence manufacturing sector.
The country is eyeing a turnover of ₹1.75 lakh crore in the defence manufacturing sector in the financial year 2024-25.
India has taken a raft of measures to boost self-reliance in the defence manufacturing sector during recent years. These include imposing phased import bans on different types of weapons, systems, ammunition, and critical sub-systems and components, creating a separate budget for buying locally made military hardware, increasing foreign direct investment (FDI) from 49% to 74% and improving ease of doing business.
On February 1, India set aside more than ₹6.81 lakh crore for defence spending in the Union Budget, including ₹1.8 lakh crore for the modernisation of the military at a time when its shopping list encompasses fighter jets, helicopters, warships, submarines, tanks, artillery guns, drones, rockets and missiles.
In all, 75% of the modernisation outlay will be spent on buying weapons and equipment from domestic sources to boost self-reliance in the defence manufacturing sector. Last year, too, the government earmarked 75% of the capital allocation for local procurement.