Defence Ministry Approves Arms Procurement Proposals Worth Rs. 28,732

Arms Procurement Worth Rs. 28,732 Crore Approved

Although, private sector players venturing into military manufacturing are likely to see stiff competition from the Ministry of Defense given the ongoing procurement of small arms and drones, among other systems, costing ₹28,732 crores. Adani Defense and Kalyani group are likely to be among the main bidders for the carbine contracts.

The Defense Acquisition Council, headed by Rajnath Singh, has recognized the need for various systems that can only be sourced from Indian companies and must meet strict original content requirements.

These individual cases will now be processed by the respective armed forces, who will invite proposals from Indian companies, conduct rigorous testing and determine the winner based on the best commercial offer.

Armed Forces to Become More Powerful

The small arms industry will see a major tussle given the requirement for four lakh close-quarter carbines that have been cleared by the defense ministry. The carbines are being procured for counterterrorism operations as well as for use on the Line of Actual Control (LCA) where thousands of troops have been forward deployed in a border standoff with China.

Competition is likely to see bids from major Indian companies with Adani Defense among the frontrunners. The company has tied up with Israel’s IWI to set up a small arms manufacturing plant in Gwalior. The Kalyani group, which is linked to Thales France, is also likely to be a competitor. Competition may also come from public sector units such as Bharat Electronics Ltd and Advanced Weapons and Equipment India. In the past, carbines were acquired globally, based in the UAE on the stock exchange.
The ministry has also given approval for the procurement of bulletproof vests for the armed forces. These vests will meet the BIS VI level of protection. At least three private sector companies in India will compete for it. They all have advanced technology already available domestically to manufacture the jackets.
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Bids for a new fleet of autonomous surveillance and armed drone swarms for the military are likely to see stiff competition from startups and tech-based companies. These systems must be designed, developed, and manufactured in India with a minimum of 50% original content.
Lastly, the army can now buy extended-range guided missile munitions, area munitions, and command centers designed and developed by DRDO. The order, worth ₹8,599 crores, is likely to be split between the PSU and Nagpur-based private player Economic Explosives Ltd.
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According to the Ministry of Defense, this decision is set to provide a major impetus to the small arms manufacturing industry in the country and increase self-reliance on small arms.

Also keeping in view the demand for enhanced security for our troops deployed along the Line of Control against the threat of enemy snipers, and in close combat operations in a counter-terrorism scenario, the DAC has equipped Bulletproof Jackets with Indian Standard BIS level protection.