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Defence PSU showcases India-made munitions at Prague show amid scrutiny after official's arrest
A CBI probe and arrests in the alleged corruption case linked to a ₹500-crore ammunition contract have cast a shadow over Munitions India Ltd (MIL).
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Munitions India Ltd (MIL) is showcasing indigenous military products at a leading trade show in Prague, Czech Republic, to attract foreign buyers and boost exports, officials aware of the matter said on Friday.
This comes even as the recent arrest of a senior executive in an alleged bribery case has put the state-owned company's internal oversight and accountability under scrutiny.
The Pune-headquartered defence PSU manufactures a wide range of ammunition, including tank rounds, bombs and rockets.
MIL, Yantra India Ltd and Bharat Electronics Ltd (BEL) are among the Indian companies showcasing defence and security technologies at the Future Forces Exhibition and Forum in Prague from October 21-23, the officials said.
The probe
A Central Bureau of Investigation (CBI) probe and arrests in the alleged corruption case linked to a ₹500-crore ammunition contract have cast a shadow over MIL, one of the country’s best-performing ordnance units, which has also strengthened its presence in overseas markets.
MIL executive director Anil Kumar, his brother B Harshavardhan and private defence firm SMPP Ltd CEO Ashish Kansal were arrested on October 14.
MIL is set to face a clean-up and a renewed push for accountability following the corruption allegations, HT reported last week. The Department of Defence Production is closely tracking the case.
The case may have raised reputational concerns for the company, but allegations against one executive do not establish corporate wrongdoing, the officials said, asking not to be named.
Private defence firm may face action
SMPP Ltd could face suspension or be debarred from government contracts under the country’s defence procurement rules. However, its name was missing from the defence ministry’s latest list of firms debarred from government business or suspended for corruption and unfair practices in securing military contracts.
Issued on October 19, five days after the CBI made the arrests, the list names 22 firms—none new. The list is periodically reviewed, leaving SMPP Ltd in line for a possible listing in the next update, the officials said. It manufactures ammunition, loitering munitions, bullet-proof jackets and helmets.
Rules allow the government to suspend business dealings with any entity pending a full inquiry into corruption allegations. It can also suspend business dealings with a firm the moment it refers any complaint against it to the CBI or any other investigating agency, or when it receives intimation regarding the initiation of a criminal investigation against that firm.
The suspension period ordinarily does not exceed one year. But in exceptional cases involving national security, the government may order a longer ban.
MIL posted highest profit
According to official data, MIL posted a profit after tax of ₹1,250 crore in 2025-26, the highest among the seven defence companies carved out of the erstwhile Ordnance Factory Board (OFB) five years ago.
The seven firms, including Yantra India Ltd, Advanced Weapons and Equipment India Ltd, Troop Comforts Ltd, India Optel Ltd, Armoured Vehicles Nigam Ltd and Gliders India Ltd, together posted a profit of ₹2,801 crore.
MIL’s exports stood at around ₹4,000 crore last year. Boosting defence exports is a key government priority. India has set a target of achieving ₹50,000 crore in defence exports by 2029-30.
The PSU reported record revenue of ₹10,954 crore in 2025-26, up 33% from the previous year. Its order book was the largest at ₹42,864 crore, while the remaining six firms together accounted for ₹57,111 crore as of April 1, 2026, according to the data.
