Keeping in view the production capacity shortage and resultant restrictions on training, the Army issued RFPs on 25 March 2017 for the under mentioned types of ammunition for the yearly requirement for next 10 years. The overall cost of the procurement has been pegged around Rs. 150 billions. The initiative for the indigenisation of ammunition is to create an inventory for all major weapons to enable the forces to fight a 30-day war while the long-term objective is to cut dependence on imports.
The ammunitions in the RFP are fired from Indian Army's existing in-service weapons and the average yearly requirement and the production targets can be revised based on the result of the first phase of the implementation of the programme. Some of them are partly being made/ attempted by OFB and others are imported till date. These are:-
Some of the specialist ammunition such as BM-21 GRAD Rockets, 30 mm VOG 17 for 30 mm Automatic Grenade Launcher, 40 mm HEAP, HEDP, RP, TM& VOG 25 for40 mm Multi Grenade Launcher/ UBGL etc are exclusive East European design and none of them are currently being manufactured in India. The country has only the performance parameters and test schedule and no Design documents. This would need the partnership with OEM, who has the design, as tweaking the design by other than OEM has not been satisfactory,
The Tentative time schedule to complete the Users and DGQA Trials by Oct 2018 and CNC and contract by 12 Nov 2018.The Bid validity is likely to be about 2 Years.
There are certain mandatory requirement in the RFP :-
The relevant details in brief are Tabulated below:-
The development and production of ammunition is capital intensive and faces regulatory hassles like production of explosives and test facilities. The Government need to take steps to ease the process for private sector. To help the private sector to recover the sunk in cost for producing the ordnance a minimum 10-years order book should help in the creation of a viable business plan, and the government will allow them export the products with minor controls.The procurement reflects the intention and effort by the government to leverage the private sector to meet India's defence needs. It also indicates some thought in the direction to safeguard the supply of ammunition from subsequent technology denial and to allow for the “surge manufacture” needed in wartime. Although RFP has been issued for above mentioned ammunition, there are others types of Ammunition as well, where we need to create additional capabilities.