ACMA calls for removal of Propellant/Primer from Critical Technology list

Automotive Component Manufacturers Association (ACMA) has requested the Defence Ministry for removal of propellant/primer from critical technology list in Request for Proposal (RFP) for imported ammunition released in the month of March 2017.

ACMA ‘ADR’ (Aviation Defence and Railways) Committee stressed upon the several key issues which remains unresolved and are contrary to the ‘Make in India’ initiative of the Government. As per RFPs, regarding the procurement of (1) 23mm ammunition, (2) 30 MM HEI and HET ammunition , (3) 30 MM VOG17 for AGL ammunition (4) 40MM MGL and UBGL ammunition, the explosives required in (Primer and Propellant) are in few grams and comprises of 2 to 3 % cost of manufacturing which incidentally is not manufactured in India.

Vinnie Mehta, Director General, ACMA said, “The cost of setting up Primer & Propellant plant of size 1500 to 200 MT is approx. Rs. 1000 crore. Hence, many Indian private manufacturers who wish to bid for these ammunition cannot set up a propellant plant, as it would be commercially unviable. It involves either losing the performance bank guarantee of several crore or buying the indigenised propellant at a high price dictated due to monopoly.”

Nevertheless, India is on a roadmap of getting the propellant technology through BMCS ammunition, the rational of forcing the other companies who wish to manufacture other ammunitions to get the propellant technology in India is completely avoidable, he said.