Adani Defence and Aerospace ammunition manufacturing facility in Kanpur

Private defence suppliers in India are calling for a significant policy review, urging the Ministry of Defence (MoD) to amend existing procurement rules that favour public sector manufacturers for ammunition supplies.

Currently, the Defence Procurement Manual (DPM) restricts most ammunition procurement contracts to public sector undertakings (PSUs), leaving private sector firms unable to contribute directly to fulfilling the munitions requirements of the Indian Armed Forces.

Private manufacturers argue that amending this rule and permitting open Requests for Proposals (RFPs) to both public and private players would not only energise the industry but also further the aims of the Make in India initiative. Many private firms have already made substantial investments and developed indigenous capabilities, making them well-equipped to supply world-class ammunition to the military.

During a recent interaction, representatives from the private sector, including top executives from prominent companies, presented their case to the MoD.

The Ministry, along with the Department of Military Affairs, has reportedly acknowledged these concerns and assured the industry that the proposal is currently under review. This move, if accepted, could mark a watershed moment for India’s defence manufacturing ecosystem.

Adani Defence and Aerospace, a leader among private manufacturers, has established a major ammunition manufacturing facility in Kanpur, as part of the Uttar Pradesh defence corridor. The facility boasts an annual output of 150million rounds of small-calibre ammunition, including 5.56mm (used mainly in INSAS rifles), 7.62mm (for AK-47, AK-203, and NATO-standard rifles), .338mm for sniper rifles, and 9mm for pistols. According to Ashish Rajvanshi, CEO of Adani Defence & Aerospace, the company already has the capacity to scale up to 300million rounds annually.

He claims this capacity is sufficient to fulfil all defence force requirements while upholding the highest quality standards, including NATO certification, making them eligible for export to several countries as approved by the External Affairs Ministry and MoD. Currently, Adani Defence exports ammunition to four countries and has recently participated in successful tenders, supplying rounds to Uttar Pradesh Police via the Government e-Marketplace (GEM) portal.

A notable part of Adani’s ambition is to localise the production of propellants (explosive materials), which are largely imported from Europe and the US. By doing so, Adani aims to reduce India’s external dependence and mitigate vulnerabilities to international supply chain disruptions. This drive for self-reliance aligns with the government’s push towards indigenisation of the defence sector.

Supporting this momentum, Defence Minister Rajnath Singh recently declared 2025 as the ‘Year of Reforms’ for the armed forces, promising sweeping changes to ensure technological advancement and combat-readiness.

Underlining the progress achieved, the Minister pointed out that India’s defence exports have witnessed dramatic growth, surging from ₹686crore in 2013–14 to ₹23,622crore in 2024–25. These reforms, alongside greater inclusion of capable private players, have the potential to transform India into a globally recognised, self-sufficient powerhouse in defence manufacturing.

Based On The Hindu Report