New Delhi: In a significant policy shift, the Ministry of Defence has allowed private companies to manufacture key missile systems and ammunition, ending the long-standing monopoly of state-run firms in this sector.
The move comes after the Ministry amended the Revenue Procurement Manual (RPM), removing the requirement for private firms to obtain a no-objection certificate (NOC) from Munitions India Limited (MIL) before starting ammunition production. This change effectively opens the doors for private manufacturers to produce a range of defence equipment including artillery shells (105 mm, 130 mm, 150 mm), mortar rounds, grenades, Pinaka rockets, 1000-pound bombs, and small- to medium-calibre ammunition.
Officials familiar with the development said the decision is based on lessons from recent military operations such as Operation Sindoor, which highlighted critical gaps in India’s long-range missile and ammunition stockpiles. The need to ensure uninterrupted firepower during prolonged conflicts, especially amid increasing regional tensions and global supply shortages, influenced the change in policy.
Missile development, previously restricted to public sector undertakings like Bharat Dynamics Limited (BDL) and Bharat Electronics Limited (BEL), will now see expanded participation from the private sector. The Defence Research and Development Organisation (DRDO) has been directed to facilitate this shift. Systems like BrahMos, Pralay, Shaurya, and Nirbhay, currently limited to public production, may now be opened up for co-development or integration by private firms.
Experts view this as a practical step towards securing India’s defence supply chain and reducing reliance on imports, especially as global conflicts continue to disrupt traditional procurement routes. While the government has promoted defence indigenisation under the Aatmanirbhar Bharat initiative, this move reflects a strategic recalibration rather than a symbolic one.
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