This joint venture includes Ordnance Factory Board (OFB) (50.5%), Kalashnikov Concern (42%) and Rosoboronexport (7.5%).

For the manufacture of AK-203 7.62 × 39 mm rifles, Rosoboronexport submitted its proposals to Indo-Russian Rifles Private Limited (IRRPL), a Russian-Indian joint venture. And, in turn, the joint venture has prepared a contract, which is awaiting signature by the Indian Ministry of Defense, a senior official at Rosoboronexport confirmed to Financial Express Online.

This joint venture includes Ordnance Factory Board (OFB) (50.5%), Kalashnikov Concern (42%) and Rosoboronexport (7.5%).

“We are ready to supply equipment, train Indian specialists and carry out commissioning at Ordnance Factory based in Korwa (UP) immediately after the contract is signed,” said the officer quoted above.

Rostec Rosoboronexport and Kalashnikov subsidiaries and Ordnance Factory Board of India plan to produce Kalashnikov assault rifles with 100% final location in India.

This rifle is on display at the Army 2021 exhibition underway in Russia.

The cost of the rifle is still an issue, although according to reports, all concerns over cost and other issues have been resolved. The overall cost of each rifle includes the cost of setting up the manufacturing unit as well as the transfer of technology.

The AK-203 – a 7.62x39mm caliber rifle, is a derivative of the more popular AK-47 and has been used not only by military personnel around the world, but several terrorist groups have preferred this rifle since 1949.

Prime Minister Narendra Modi and Russian President Vladimir Putin both made a deal to set up the Kalashnikov rifle factory in India in 2018.

Indo-Russian military trade

In the past three years, military trade between the two countries has reached $ 15 billion.

This is what Victor N Kladov, head of international cooperation and regional policy of the state company Rostec, said at the Army 2021 exhibition in Russia. A large official delegation comes from this country to attend the exhibition and meet with senior officials.

What are the contracts worth $ 15 billion?

Despite US sanctions against Russia, bilateral military trade between the two countries has reached $ 15 billion in the three years since 2018. This includes $ 5.2 billion for the S400 Triumf air defense system which was inked in 2018 .

The lease of the third Chakra III nuclear-powered attack submarine and the $ 3 billion contract were signed in 2019.

And several other emergency purchases have been made since 2018.

Indian army requirements

The Indian military urgently needs two different rifles – a light assault rifle and a rifle that has a high rate of fire and can be used to guard the long stretches of borders close to China and Pakistan.

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