A 28 per cent jump in the capital outlay of Pune-based defence PSU Munitions India Limited (MIL), pegged at Budget Estimate (BE) of ₹745.45 crore, for FY25 from BE and Revised Estimate (RE) of ₹580 crore of FY24, is a prelude to government’s long-term plan to infuse huge funds for capacity building to make the country self-sufficient in indigenously produced ammunition as well as to ensure adequate reserves for sustaining long-drawn intense wars.  

The Budget documents showed that MIL, which did a business of over ₹7,000 crore last year, including about ₹2,000 crore of exports, got the maximum capital outlay among seven defence PSUs. It’s learnt that the capital investments, pouring into the MIL from FY23 where it stood at ₹577 crore, is earmarked to replace old with latest machinery and for expansion of manufacturing facilities to incorporate new projects like 30 mm and 40 mm grenades manufacturing.

Apart from the DPSUs like the MIL and Bharat Dynamics Limited (BDL), Premier Explosives Ltd, HBL Power Systems Ltd, and Economic Explosives Ltd are among the private players that account for ammunition and explosive business of ₹13,000 crore to ₹15,000 crore.

Taking cue from ongoing global conflicts, the Ministry of Defence is preparing a blueprint for empowering tri-services with indigenously produced ammunition and reserves for wars that defy military doctrine assessments.

Indigenous ammunition production

Sources aware of the development said a high-level discussion is in progress in the MoD, spearheaded by Defence Secretary Giridhar Aramane, on augmenting indigenous ammunition production capability of the defence PSUs and private industry. A broad assessment of future requirements of the armed forces in case of a prolonged battle is also being worked out. 

A blueprint on ‘war insurance’ to keep the nation secured through timely domestic availability of ammunition required by tri-services at all times is expected to be ready in next three months after the detailed discussions with stakeholders including the industry, sources stated.

Executing the plan can take a minimum of three years following a go ahead by the government, believe sources.

No war scenario

In the strategic planning, said sources, the stakeholders are splitting their brains over what could be the balancing solution for the country in case of a no war scenario as the whole exercise is cost and labour intensive, and requires scaled-up infrastructure for manufacturing and storage.

So far, the armed forces have a minimum of 10-day war reserve of ammunition and supplies. But that’s not enough given that the Russia-Ukraine war which is over two years old and both the countries’ forces still fighting while the Israel-Hamas conflict has run into the ninth month.    

Only for land systems, sources said, the country is virtually atmanirbhar in ammunition but quantity would be an issue. The country is still import-dependent in certain classes of ammunition. 

India would need at least four to five times of ammunition for armed forces to fight a war at a normal rate or for intense engagement, sources estimated. 

Operational Directive

The blueprint on reserves is also expected to scrutinise existing rules and guidelines on ammunition and supplies. For long, there has been a demand to review Raksha Mantri’s Operational Directive (OD) of 2009. 

Former Army Chief General NC Vij issued a directive in 2009 that said, “We should be prepared to fight on both fronts simultaneously 30-day (intense) and 60-day (normal) rates”.

However, the Indian Army has been unable to stock ammunition and supplies sufficient for a month. Post Kargil war of 1999, the Army brought in Minimum Acceptable Risk Level (MARL) concept for having ammunition reserve to wage 20 days of intense war. Ammunition reserve depleting to manage less than ten days of war is considered critical for forces. The wars have also led to a huge spike in demand for ammunition; a defence expert said that Pakistan is exploiting the situation to export legally as well as illegally arms and ammunition to foreign customers.

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