1.

      Do you see potential in the Indian small arms market? Your comment on recent policy
developments as announced by the government.
 
Indeed! The Indian small arms market has huge potential out of which  lion’s share pertains to
Military & Para-military forces and enforcement agencies. Alongside,  there is  very good
demand in civilian market in respect of permitted categories of small arms (non-prohibited bore
-NPB).
 
In any theater of war, the soldier on ground will always have primacy and critical to success.
Hence, the defence as well as para-military, Central and State Police forces will continue to have
demand of modern small arms, and consequentially huge opportunities for the Industry.
The high demand of small arms is primarily driven by the Infantry’s modernization, which is
overdue.  particularly  as Infantry is straddled with an ageing INSAS (Indian Small Arm System)
5.56mm Rifle and a World War- II vintage 9mm Carbine.  Army’s requirement  is reflected
through various  RFIs and RFPs, which have been  hither-to  floated by  the Ministry of Defence
in respect of  7.62 mm Assault Rifle , 5.56mm Carbine , 7.62mm Light Machine Gun, Anti-
Material Rifles, and Sniper rifles etc.  Additional demand also exists towards modernization of
Para-military and Central and State Police forces; Government is also reviewing  increase in the
sanctioned strength of police forces (Police per citizen).
 
As of now,  the demand of the Armed Forces in respect of small arms is being met only by the
Ordnance Factory Board under Ministry of Defence. Alongside import  of certain special
categories of small arms is also being resorted. I must say that  Hon’ble 
The Prime Minister’s  Make in India initiative  and subsequently his call for “Atmanirbhar Bharat”
have created enthusiasm in the private sector to invest in the manufacture of small arms. The
liberalised FDI regime, issue of licence for manufacturing of small arms to the private sector  and
also the ongoing/planned RFI/RFP under the Buy and Make (Indian) category of acquisition are
testimony to government’s  commitment towards wider participation of the private sector to
facilitate competitive procurement of modern small arms. These initiatives are aimed to extract
the best value for money against acquisition by the armed forces  and reduce armed forces’
dependency on import in this critical segment.  
 
We must acknowledge that equipping our soldiers with indigenously produced small arms is
highly morale boosting for the nation and a matter of proud   as these are their personal
weapons.   
 
2.       Kindly provide information regarding your product category range being
manufactured at present. Initially, how many guns do you plan to supply to the Indian
defence and security forces?
 
On 27th January, 2020, Jindal have signed a joint venture agreement for Transfer of Technology
for manufacture of small arms and setting up of a JV company with Taurus Armas S.A., Brazil.
Taurus is one of the world’s best firearms manufactures having their products in-service with
many countries.  The product range includes a wide range of small arms viz 5.56mm
Carbine/Assault Rifle, 7.62mm Assault Rifle, 9mm Pistol for the Armed Forces and  also Non-
Prohibited Bore (NPB) small arms viz. .32 revolver/Pistol etc. for the civilian market. In the initial
phase, manufacture of NPB  Pistols and Revolver for the civilian market is planned through
progressive indigenization.  In respect of small arms for military use,   our approach is to
capitalize on the opportunities emerging through RFIs/RFPs/tender from the Army and other
Armed Forces and plan production accordingly. Proactively, we are also offering small arms to
the Armed Forces for trial on ‘no- cost- no- commitment’ basis.
 
Taurus is a globally known brand and leader in respect of small arms, particularly pistols and
revolvers. Compared to its competitors, Taurus have a  diversified range of small arms which
have superior performance including better accuracy & reliability and  aesthetic look. These
factors give us confidence that Taurus’  models will receive encouraging  response  in the
market.
 
3. Please provide information regarding your current manufacturing unit and production
capacity. Have you got the transfer of technology from your joint venture partner (Taurus -
Brazil) for arms and ammunition?
 
The manufacturing activity is planned to be undertaken  in Hisar, Haryana.
Currently, the company's main focus is to establish an ultra-modern infrastructure for
manufacturing of  small arms in Hisar. "At present, I  may not be able to indicate  the quantities
which Jindal will be producing but  I may confirm that we are targeting   a product-mix  capacity
100,000 units per annum. The transfer of technology is planned to commence after the
formation of the joint venture company," says Abhyuday Jindal, Managing Director, JSHL.
 
3.      What do you think are the biggest obstacles faced by small arms manufacturers in
India?
 
The biggest obstacle being faced by the small arms manufacturers is abnormal delay that is
taking place in regard to procurement of small arms, particularly 5.56mm Carbine;
though   Indian defence industry has been proactive and ventured into MoUs and JVs with
foreign OEMs to create a robust defence infrastructure. In respect of 5.56mm Carbine, since
2011, repeated RFIs have been floated for procurement through indigenous production but not
concluded to contract stage; RFI floated in 2011 progressed to RFP stage, which too was finally
dropped in 2015.  
The Government has also resorted to preferential treatment to  Govt. owned production unit-
Ordnance Factory Korwa in respect of 7.62x39 Assault Rifle, covering long-term requirement
without extending opportunity to private players for competitive bidding. In this connection, I
must mention that in order to sustain indigenous small arms manufacturing by private sector,
the standalone efforts by the industry need to be supplemented by a consistent business
opportunity. In respect of Armed Forces’ actual requirement, there is also limited flow of
information to the private sector.
In such an uncertain scenario in regard to the acquisition programme and also actual technical
requirement of the small arms, private industry struggles to firm-up their investment
programme and take timely preparatory action to effectively respond when formal
requirements emerge.
 
The abnormally long time in procurement, particularly time involved in finalization of RFI/RFP, is
a matter of concern and requires improvement. The licensing process also needs streamlining
with introduction of online process for application of licence, like DPIT. The private industry,
being new entrant in the sector, is not aware of various regulatory clearances and procedural
requirements that are required to be met in respect of infrastructure creation and manufacture
of small arms.  MoD and MHA should provide requisite support to the industry in this regard.
 
 5.        What are your plans for export in near future?
 
We are focusing on  the requirement of our Armed Forces. At  a later stage, after establishing
our value chain and supply chain, we will cater to the export market.