India and Russia have finalized a deal for manufacturing AK-47 203 the 7.62×39 mm rifles. The Indian Army has a requirement for around 770,000 AK-47 203 rifles, out of which 100,000 will be imported from Russia and the rest will be manufactured in India by the joint venture Indo-Russia Rifles Private Limited (IRRPL). The OFB would own a majority stake of 50.5 percent in IRRPL while the Kalashnikov Group would have a 42 percent share and remaining 7.5 percent would be owned by Russia's state-owned export agency, Rosoboronexport.
The AK-47 203 is the advanced version of the AK-47 rifle. It will replace the Indian Small Arms System (INSAS) 5.56x45 mm assault rifle. The cost of per rifle is expected to be around $1100 including the cost of technology transfer and also that of setting up of the manufacturing unit. In India, the weapon will be manufactured in Korwa Ordnance Factory in Uttar Pradesh.