Call for Removal of Propellant from Defence RFPs

New Delhi, India - The Automotive Component Manufacturers Association of India (ACMA) has put in a request to the Defence Ministry for the removal of propellant/primer from Critical Technology list. As per RFPs, regarding the procurement of 23mm ammunition, 30 MM HEI and HET ammunition, 30 MM VOG17 for AGL ammunition, 40MM MGL and UBGL ammunition, the explosives required in Primer and Propellant are in few grams and comprises
2 to 3 percent cost of manufacturing which incidentally is not manufactured in India.

Vinnie Mehta, Director General, ACMA, said, “The cost of setting up Primer & Propellant plant of size 1500 to 2000 MT is approx. ` 1,000 crore. Hence, many Indian private manufacturers who wish to bid for these ammunitions cannot set up a propellant plant as it would be commercially unviable. It involves either losing the performance bank guarantee of several crores or buying the indigenized propellant at a high price dictated due
to monopoly.”

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