MOSCOW: India and Russia have closed a major manufacturing deal AK-47 203 rifles in India during Defense Minister Rajnath Singh’s ongoing visit, Russian official media reported on Thursday.
The AK-47 203 is the latest and most advanced version of the AK-47 rifle, which will replace the Indian Small Arms System (INSAS) 5.56×45 mm Assault rifle.
Indian army requires around 770,000 AK-47203 rifles, of which 100,000 will be imported and the rest will be manufactured in India, the Russian state Sputnik the news agency said.
The rifles will be manufactured in India as part of the Indo-Russia Rifles Private Limited (IRRPL) joint venture, established between the Ordnance Factory Board (OFB), Kalashnikov Concern and Rosoboronexport, the Russian state agency for military exports, he said.
There was no official confirmation from the Indian government on the completion of the deal.
The OFB would own a 50.5 percent majority stake in IRRPL, while the Kalashnikov Group would hold a 42 percent stake. Russia’s state export agency Rosoboronexport would own the remaining 7.5 percent, according to the report.
The Russian 7.62 × 39mm gun will be produced at the Korwa Artillery Factory in Uttar Pradesh, which was inaugurated by Prime Minister Narendra Modi last year, according to the report.
The cost per rifle is expected to be around $ 1,100, including the cost of technology transfer and the establishment of the manufacturing unit, according to the report.
The INSAS, which has been in use since 1996, has developed some problems such as jams and magazine breaks at higher altitudes in the Himalayas, according to the Sputnik report.
On Video: India, Russia Finalize Major Deal For AK-47 203 Rifles: Report
The AK-47 203 is the latest and most advanced version of the AK-47 rifle, which will replace the Indian Small Arms System (INSAS) 5.56×45 mm Assault rifle.
Indian army requires around 770,000 AK-47203 rifles, of which 100,000 will be imported and the rest will be manufactured in India, the Russian state Sputnik the news agency said.
The rifles will be manufactured in India as part of the Indo-Russia Rifles Private Limited (IRRPL) joint venture, established between the Ordnance Factory Board (OFB), Kalashnikov Concern and Rosoboronexport, the Russian state agency for military exports, he said.
There was no official confirmation from the Indian government on the completion of the deal.
The OFB would own a 50.5 percent majority stake in IRRPL, while the Kalashnikov Group would hold a 42 percent stake. Russia’s state export agency Rosoboronexport would own the remaining 7.5 percent, according to the report.
The Russian 7.62 × 39mm gun will be produced at the Korwa Artillery Factory in Uttar Pradesh, which was inaugurated by Prime Minister Narendra Modi last year, according to the report.
The cost per rifle is expected to be around $ 1,100, including the cost of technology transfer and the establishment of the manufacturing unit, according to the report.
The INSAS, which has been in use since 1996, has developed some problems such as jams and magazine breaks at higher altitudes in the Himalayas, according to the Sputnik report.
On Video: India, Russia Finalize Major Deal For AK-47 203 Rifles: Report
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