Moscow, Delhi sign deal to produce Kalashnikov assault rifles in India

A deal was completed as part of the meeting between Russian President Vladimir Putin and Indian Prime Minister Narendra Modi in Delhi

Joint Russian-Indian venture Indo-Russian Rifles Private Limited and the Ministry of Defence of India signed a contract to produce more than 600 thousand Kalashnikov assault rifles in India and supply them to the country’s line ministries. Rostec holdings own 49.5% of the stock in the joint venture: the Kalashnikov Concern holds 42% of shares and Rosoboronexport holds 7.5%.

“Initial 70 thousand AK-203 assault rifles will be produced in India with a phased increase in localization, from 5% to 70%. The rest of the rifles will be produced under 100% localization,” said Sergey Chemezov, Director General of Rostec Corporation.

According to the international cooperative chain that has been formed, localization of Kalashnikov assault rifle production will facilitate the production of more than 600 thousand rifles. Moreover, this will support Indian security agencies in their effort to equip personnel with modern small arms at the lowest cost.

“Specialists from Rosoboronexport and the Kalashnikov Concern take an active part in all stages of the organization of production. As of now an advanced production line of the plant in Korwa (the state of Uttar Pradesh) has been built, as well as a shooting range at which both factory tests and acceptance tests will be conducted,” commented Alexander Mikheev, Director General of Rosoboronexport.

When concluding the deals with India, mutual settlements were made in national currencies. In addition, when signing contract documents, the practice of offset projects was applied.