MoD inks deals worth ₹10,000-crore to boost army’s firepower
The contracts were signed with Nagpur-based private firm Economic Explosives Limited and Pune-based Munitions India Limited.
The defence ministry on Thursday said it has signed two contracts worth ₹10,147 crore to procure ammunition for the army’s indigenous Pinaka multi-launcher rocket system, giving a boost to self-reliance in defence manufacturing.
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 after the Cabinet Committee on Security (CCS) cleared the procurement last week.
“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.
The procurement marks a significant milestone in modernising artillery rocket regiments and bolstering the army’s firepower, it added.
The Pinaka rocket system was among the weapons displayed at the 76th Republic Day parade, alongside T-90 tanks, BMP-II Sarath infantry combat vehicles, BrahMos supersonic cruise missile, BM-21 Agnibaan multiple-barrel rocket launcher and 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,” the statement said.
Munitions India Limited is one of seven defence companies carved out of the erstwhile Ordnance Factory Board in 2021 as part of its corporatisation to boost efficiency and competitiveness in defence manufacturing.
India aims for a turnover of ₹1.75 lakh crore in defence manufacturing in 2024-25. The country has taken several measures to boost self-reliance, including phased import bans on weapons and systems, creating a separate budget for local military hardware, increasing foreign direct investment from 49% to 74% and improving ease of doing business.
On February 1, India allocated ₹6.81 lakh crore for defence in the Union Budget, including ₹1.8 lakh crore for military modernisation. The shopping list includes fighter jets, helicopters, warships, submarines, tanks, artillery guns, drones, rockets and missiles.
The government earmarked 75% of the modernisation outlay for domestic procurement to boost self-reliance, matching last year’s allocation for local sourcing.