OFB-Kalashnikov JV plans have reached roadblock as parties failed reached an agreement on a commercial terms.
Follow New Defence Order. Strategy on Google News.
According to Indian media, differences in pricing and the travel restrictions caused by Covid-19 will not allow the Amethi AK-203 factory to start operating in 2020.
Previously, plans were that the Joint Venture would arrive at a fair price for setting up and producing almost 700,000 rifles by the end of May.
March 2019 witnessed the opening of the Indo-Russian Rifles Private Limited factory. Later, the head of Rosoboronexport, Alexander Mikheev, noted that the parties agreed on the production of 750 thousand rifles, mainly from local components.
In February 2020, the Federal Service for Military-Technical Cooperation of Russia announced that it was counting on the manufacture of the first batch of AK-203 in India this year.
Indo-Russia Rifles Private Limited is a rifle-manufacturing facility in Korwa, Amethi district in the Indian state of Uttar Pradesh. The factory is a joint venture between three companies. OFB owns the controlling stakes of 50.5% , Kalashnikov owns 42% stake, while Rosonboronexport owns a stake of 7.5% . An Indian CEO from the Indian Army leads the company.
