With Russia waiving a royalty provision in favour of innovation transfer, the green signal has actually been offered for the offer to produce AK 203 attack rifles at the Amethi factory. The Rs 5,124 crore agreement is most likely to be tattooed in the coming months, with production anticipated to begin next year.
Sources stated all problems associated with the expense and indigenisation material that had actually kept back the task till now have actually now been figured out and a consent has actually been provided by the Rajnath Singh-led Defence Acquisition Council
Central to the cleared proposition will be a complete innovation transfer for the rifles that are to be produced in India. In earlier conversations, the Russian side had actually requested for a royalty on each rifle being produced in India. This has actually now been waived and India will spend for innovation transfer, waiving the royalty.
The relocation, sources stated, would lead to conserving of a minimum of Rs 200 crore in the coming years and would guarantee that India gets the knowledge to produce modern-day attack rifles that can likewise be exported in future. As part of the agreement, 70,000 rifles will be imported straight from Russia while 6,01,427 will be produced by an OFB-Kalashnikov joint endeavor.
As reported by ET, the continuous restructuring of the Ordnance Factory Board(OFB) is not anticipated to have any effect on the joint endeavor for the production of AK 203 rifles and a total transfer of innovation is anticipated to be attained within 32 months of the agreement.
The strategy to make has actually been under conversation for nearly 2 years, with the agreement specifying 100%transfer of innovation and possible exports in future from the Indian plant. The Amethi factory in Amethi was inaugurated in 2019 however production is yet to begin.
As the AK 203 offer was being worked out, the army had actually put import orders for the Sig Sauer 716 attack rifles, which were priced at Rs 89,000 a piece. Emergency situation monetary powers were utilized to buy 1.4 lakh of the US-made rifles. On the other hand, the Russian origin rifles that will become completely produced in India are anticipated to cost a little over Rs 70,000 per piece after production starts.
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