NEW DELHI, 24 November 2021, (TON): Sources confirmed that the Defence Acquisition Council (DAC) cleared the long-pending proposal for a deal with Russia to manufacture 6 lakh AK 203 assault rifles for the Army in India.

The deal had been struck over several points for nearly two years, including negotiations over technology transfer.

The DAC also cleared a proposal to acquire two satellites for the Indian Air Force to help them communicate beyond the line of sight.

The deal for the assault rifles, to be manufactured by Amethi-based Indo-Russian Rifles Private Limited, is expected to be worth around Rs 5,000 crore, and the final approval comes ahead of Russian President Vladimir Putin’s visit to India in the first week of December.

It is likely to be signed in Putin’s is presence.

The deal is part of the Inter-Government Agreement with Russia, under which the first 70,000 rifles will be off-the-shelf, after which the transfer of technology for the guns to be made in India will begin.

The sources said “Russia had earlier demanded royalty over each gun to be manufactured in India but later it waived the clause. There were a few other issues that had been stuck in negotiations, which have largely been sorted out.”