17-Dec-2021: Defence Production Units

An Inter-Governmental Agreement (IGA) on “Mutual Cooperation in Joint Manufacturing of Spares, Components, Aggregates and other material related to Russian/Soviet Origin Arms and Defence Equipment” was signed during the 20th India-Russia Bilateral Summit held at Vladivostok in 2019. The objective of the IGA is to enhance the “After Sales Support” and operational availability of Russian origin equipment currently in service in Indian Armed Forces by organizing production of spares and components in the territory of India by Indian Industry by way of creation of Joint Ventures/Partnership with Russian Original Equipment Manufacturers (OEMs) under the framework of the “Make in India” initiative.

Further, an Inter-Governmental Agreement was signed in 2018 between Government of India and Government of Russia for manufacture of AK-203 rifle in India through a Joint Venture. Accordingly, M/s Indo Russian Rifles Pvt. Ltd. (IRRPL) was incorporated in 2019 with shareholding of erstwhile Ordnance Factory Board (OFB) (50.5%) from Indian side and Concern Kalashnikov (CK) (42%) & Rosoboron Export (ROE) (7.5%) from Russian side.

Capital procurement of defence equipment are undertaken from various domestic as well as foreign vendors, based on threat perception, operational challenges and technological advancements and to keep the Armed Forces in a state of readiness.

During FY 2013-14 to 2020-21, 407 contracts have been signed, out of which 156 contracts have been signed with foreign vendors for capital procurement of defence equipment for Armed Forces. Delivery schedule of equipment is specified in each contract.