Military sources in New Delhi said the Ministry of Defence (MoD) was finalising agreements with Denel of South Africa to provide around 25,000 rounds of 155-mm shells for around $1000 apiece for its FH 77B Bofors howitzers, deployed in large numbers near Kargil, close to the Line of Control (LoC).

While the Ordnance Factory Board (OFB) does make 130-mm shells, military sources say the numbers in stock were insufficient. The Army needs to maintain war wastage reserves of equipment for times of conflict but over the years these have, unfortunately, been rather on the lower side.

The sources said the agreement for the ordnance purchase will be finalised by the end of the week and the rounds will be airlifted from the respective countries and start trickling in by mid-June.

The Army is dailyexpending hundreds of rounds of artillery shells and mortar rounds to counter Pakistan's barrage across the LoC that is sustaining the insurgents holding strategic ridges and pushing back India's advancing columns fighting to dislodge them.

Meanwhile, the OFB's newly established facility to produce varied ordnance at Badmal in Orissa, including 155-mm shells, with US equipment and knowhow, has been jeopardised by the imposition of sanctions after last year's nuclear tests.

The worst hit at Badmal is the manufacturing facility set up by Day and Zimmermann of Pittsburgh in the US for detonators, delay devices and fuses for desperately needed High Explosive Extended Rounds (HEER) for the Bofors howitzers.

Sources connected with the project said though the 155-mm filling plant supplied by the US company was commissioned barely a week before the nuclear tests, subsequent sanctions had forced it to abandon work on the fuse and detonator plants scheduled for commissioning a month later.

The termination ofwarranty support, spares and further technical assistance on all US equipment, including the explosive pouring and ``puddling'' machines and X-rays to examine shells, would also adversely affect the production of 155-mm rounds.

Also affected is the manufacture of the 125-mm rounds used by T-72 tanks, India's main battle tank. These shells have been in short supply for years and live firing for around 26 of 58 regiments equipped with T-72 tanks has been curtailed, in some instances even cancelled for several years.

The negotiations for around 100,000 rounds of 125 mm shells have been in the pipeline for several months but, military sources said, are now likely to be expedited. The remaining regiments armed with T-55s and locally built Vijayanta tanks, however, have continued with their routine firing schedules as the 105mm ammunition they utilise is made by the OFB.

Day and Zimmermann had also supplied India 40,000 rounds of 155-mm cargo ammunition in late 1980s for around $ 80 million when the Boforshowitzers were imported, including the data package, to make them locally, an option that too remains foreclosed.

Projected as Asia's largest munitions factory, the Badmal ordnance facility was set up to annually produce 200,000 Barmines, 200,000 155-mm rounds, 150,000 125-mm rounds and large quantities of 30-mm ammunition for BMP's besides various fuses and detonators.

The fuse plant for 30-mm shells at Badmal has been set up by KINTEX of Bulgaria while Meissner GmbH & Co of Koln in Germany has installed the unit to make automatic detonators capable of activating large calibre ammunition and fuses.