Indian and Russian defence majors – Bharat Electronics Limited (BEL) and Rosoboronexport – have signed a tripartite Memorandum of Understanding (MoU) for licensed production and supply of high explosive incendiary (HEI) ammunition for the Indian Army, according to a statement by BEL.
The MoU was signed by BEL Director (Marketing) KV Suresh Kumar and Rosoboronexport's Deputy Director General Viacheslav V Kozlov in New Delhi on Tuesday.
"The MoU aims at leveraging the complementary strengths and capabilities of BEL and Rosoboronexport. It will enable the indigenisation of ammunition, as required by the Indian Army, in line with the Government of India's 'Make in India' and 'Atmanirbhar Bharat' (self-reliant India) initiatives," according to the Indian statement.
Under the agreement, the companies would co-produce 30 mm ammunition (HEI & HET), 40 mm ammunition (VOG-25) and 30 mm grenade ammunition (VOG-30D) in India.
VOG-25 and VOG-30D rounds, manufactured by Rosoboronexport, are designed to be fired from grenade launchers attached to assault rifles, according Russian company.
Co-production and co-development of arms and weapons systems was one of the focal areas of discussions at the 22nd Russia-India Annual Summit co-chaired by Prime Minister Narendra Modi and President Vladimir Putin at the Kremlin this month, as per officials.
Both the leaders called for joint work to develop military spares and advanced equipment and systems under the Make in India policy.
In line with the government's initiative push in the defence sector, the Union Budget 2024-25 unveiled on Tuesday allocated $11 billion for procurement of arms and systems from domestic sources.