Contract for AK-203 production awaits MoD signature

By: |
August 27, 2021 8:59 PM

Both Prime Minister Narendra Modi and the Russian President Vladimir Putin had reached an agreement to set up the manufacturing facility for the Kalashnikov rifles in India back in 2018.

AK203This joint venture has Ordnance Factory Board (OFB) (50.5 percent), the Kalashnikov Concern (42 per cent) and Rosoboronexport (7.5 percent).

For the manufacturing of AK-203 7.62×39 mm rifles, Rosoboronexport has submitted its proposals to Indo-Russian Rifles Private Limited (IRRPL), a joint Russian-Indian venture. And, in turn, the joint venture has prepared a contract, which is awaiting signature by the Indian Ministry of Defense, top company official of Rosoboronexport has confirmed to Financial Express Online.

This joint venture has Ordnance Factory Board (OFB) (50.5 percent), the Kalashnikov Concern (42 per cent) and Rosoboronexport (7.5 percent).

 “We are ready to supply equipment, train Indian specialists and carry out commissioning at Ordnance Factory based in Korwa (UP) immediately after signing the contract,” the officer quoted above said.

Rostec’s subsidiaries Rosoboronexport and Kalashnikov and India’s Ordnance Factory Board are planning to produce Kalashnikov assault rifles with a final 100 per cent localization in India.

This rifle is on display at the ongoing Army 2021 Expo in Russia.

The cost of the rifle still remains an issue though according to reports all the concerns related to the cost and other issues have been resolved. The overall costs of each rifle include the cost of setting up the manufacturing unit as well as Transfer of Technology.

The AK-203 — a 7.62x39mm caliber rifle, is a derivative of the most popular AK-47and this is being used by not only the militaries globally but several terror groups prefer this rifle since 1949.

Both Prime Minister Narendra Modi and the Russian President Vladimir Putin had reached an agreement to set up the manufacturing facility for the Kalashnikov rifles in India back in 2018.

India-Russia Military Trade

Over the last three years the military trade between the two countries has touched USD 15 billion.

This was stated by Victor N Kladov, head of International Cooperation and Regional Policy of Rostec State Corporation during the ongoing Army 2021 Expo in Russia. A large official delegation is from that country to attend the expo and meet top officials.

What are the deals worth USD 15 billion?

Despite the US sanctions on Russia, the bilateral military trade between the two countries has touched USD 15 billion in three years since 2018. This includes USD 5.2 billion for S400 Triumf Air Defence system which was inked in 2018.

Leasing of the third nuclear-powered attack submarine— Chakra III and the USD 3 billion contract was signed in 2019.

And several other emergency procurements have been made since 2018.

Requirements of the Indian Army

The Indian Army has an urgent requirement for two different rifles – a light assault rifle and a rifle which has a high rate of fire and can be used for guarding the long stretches of borders close to China and Pakistan.

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