India’s indigenous small arms manufacturing programme has received a boost with Bharat Electronics Limited (BEL) and Sahana Defence Limited (SDL) signing a Teaming-cum-Supply Agreement for the development and supply of critical components and sub-assemblies for the AK-203 assault rifle. The agreement, signed on October 12, 2026, in Navi Mumbai, Maharashtra, aims to strengthen domestic manufacturing capabilities and support the production of modern assault rifles for the Indian Armed Forces.
The collaboration will address the component requirements of Indo-Russian Rifles Private Limited (IRRPL), the India–Russia joint venture responsible for manufacturing AK-203 assault rifles at Korwa in Amethi, Uttar Pradesh. The partnership brings together BEL’s established defence engineering and manufacturing capabilities with Sahana Defence’s technological expertise to support the progressive indigenisation of rifle components and peripherals.
Both companies confirmed the development through their official corporate announcements. The agreement represents another step in expanding India’s domestic defence supply chains, particularly in small arms manufacturing, where precision engineering, component reliability and consistent production quality are essential.
BEL and Sahana Defence Sign Agreement in Navi Mumbai
Bharat Electronics Limited, a Navratna Defence Public Sector Undertaking under the Ministry of Defence, signed the Teaming-cum-Supply Agreement with Sahana Defence Limited on October 12, 2026. The agreement establishes a framework for cooperation in developing and supplying specialised components required for the AK-203 assault rifle programme.
The agreement documents were exchanged between Anoop Kumar Rai, Director (Marketing), Bharat Electronics Limited, and Brigadier Rajiv Kumar Singh (Retd.), Chief Strategy Officer, Sahana Defence Limited. The ceremony took place in the presence of Jayandran I, General Manager (NAMU), BEL, along with senior executives and technical representatives from both organisations.
According to BEL’s official announcement, the partnership will combine the engineering capabilities, manufacturing infrastructure and technological expertise of both companies. Their collaborative efforts will focus on developing high-precision components and sub-assemblies suitable for integration into AK-203 rifles manufactured in India.
Sahana Defence also confirmed that the agreement covers the development and indigenisation of components and peripherals for the AK-203 programme. The company identified the collaboration as an important development in its participation in India’s defence manufacturing sector.
The partnership supports the government’s Make in India and Atmanirbhar Bharat initiatives by encouraging domestic production of components required for military equipment. It also strengthens cooperation between a major defence public-sector enterprise and a private technology company.
Partnership Supports Indo-Russian Rifles’ AK-203 Manufacturing Programme
The BEL–Sahana Defence agreement is directed towards the requirements of Indo-Russian Rifles Private Limited, the joint venture established to manufacture AK-203 assault rifles in India.
IRRPL operates its manufacturing facility at Korwa in Amethi district, Uttar Pradesh. The enterprise was established through cooperation between Indian and Russian defence organisations to undertake domestic production of the AK-203 rifle.
The joint venture brings together India’s Advanced Weapons and Equipment India Limited (AWEIL) and Munitions India Limited (MIL) with Russia’s Rosoboronexport and Concern Kalashnikov.
According to the Ministry of Defence, the Indian partners hold a combined 50.5% stake in the joint venture, while the Russian partners account for the remaining 49.5%.
The manufacturing programme forms part of India’s efforts to modernise the small arms available to its armed forces while establishing domestic production capabilities for advanced infantry weapons.
The collaboration involving BEL and Sahana Defence will contribute to this manufacturing ecosystem by developing locally produced components and sub-assemblies that can support the rifle programme’s indigenisation objectives.
AK-203 Programme Covers More Than Six Lakh Assault Rifles
The AK-203 manufacturing programme originated from a major defence procurement agreement between India and Russia.
On December 6, 2021, the Ministry of Defence signed a contract with Indo-Russian Rifles Private Limited for the procurement of 6,01,427 AK-203 assault rifles.
The agreement established the framework for manufacturing these rifles at Korwa, Uttar Pradesh, through the Indo-Russian joint venture.
The AK-203 is a modern assault rifle chambered for the 7.62×39mm cartridge. It belongs to the AK-200 series developed by Russia’s Kalashnikov Concern and incorporates improvements in ergonomics, modularity and compatibility with modern accessories.
The rifle is intended to support the Indian Armed Forces’ requirement for modern infantry weapons suited to diverse operational environments.
Domestic production of the AK-203 also provides opportunities for Indian manufacturers to develop expertise in precision components, mechanical assemblies and specialised small arms engineering.
The involvement of additional Indian suppliers strengthens the industrial network supporting the programme and contributes to the development of manufacturing capabilities within the country.
Indigenous Components Strengthen AK-203 Production
The development of domestic components is an important part of India’s AK-203 manufacturing strategy. A modern assault rifle consists of numerous specialised parts and sub-assemblies that must meet demanding requirements for dimensional accuracy, mechanical reliability, durability and interchangeability.
Producing these components domestically requires capabilities in precision engineering, material processing, manufacturing technology and quality assurance.
BEL and Sahana Defence intend to combine their respective technical capabilities to address these requirements through the October 2026 agreement.
The collaboration will focus on the development and supply of components and peripherals suitable for the AK-203 manufacturing programme. Their work will contribute to the broader process of establishing domestic production capabilities for parts that support rifle assembly and manufacturing.
Indigenisation involves more than assembling a finished product within the country. It also requires the development of local suppliers capable of manufacturing specialised components to consistent technical standards.
A stronger domestic supply chain can help improve production coordination, reduce dependence on external component sources and develop engineering expertise among Indian enterprises.
The BEL–Sahana Defence agreement contributes to this process by creating a dedicated partnership for component development and supply.
Bharat Electronics Expands Its Role in Defence Manufacturing
Bharat Electronics Limited is one of India’s major defence electronics and systems engineering companies. Established in 1954, the Bengaluru-headquartered enterprise operates under the Ministry of Defence and supplies a wide range of technologies to the Indian Armed Forces.
BEL has developed capabilities across radar systems, electronic warfare, military communications, electro-optics, naval systems, electronic components and other specialised defence technologies.
The company also maintains manufacturing, testing and systems integration facilities supporting complex defence equipment programmes.
Its participation in the AK-203 component initiative reflects the expanding role of defence public-sector enterprises in building domestic industrial partnerships.
By working with specialised private-sector companies, BEL can combine its experience in programme execution, engineering and manufacturing with technologies developed by emerging industrial enterprises.
This collaborative approach supports the development of broader domestic supply networks for defence equipment and associated components.
The AK-203 agreement also provides BEL with an opportunity to contribute to India’s small arms manufacturing ecosystem through a partnership focused on component development and indigenisation.
Sahana Defence Builds on Its Technology and Engineering Capabilities
Sahana Defence Limited, formerly known as Softvan Limited, is a subsidiary of Sahana System Limited, an Ahmedabad-headquartered technology company.
Sahana System operates across several technology sectors, including artificial intelligence, machine learning, cybersecurity, digital engineering, cloud services and specialised enterprise solutions.
Through Sahana Defence, the group has expanded its activities into defence-related technologies and industrial collaborations.
The company has been developing partnerships aimed at combining software engineering, digital technologies and specialised defence applications.
Its association with Bharat Electronics provides an opportunity to participate in projects involving indigenous defence technologies and manufacturing capabilities.
Under the October 2026 agreement, Sahana Defence will work with BEL on components and peripherals associated with the AK-203 rifle programme.
The partnership adds small arms component development to the areas of cooperation being pursued by the two organisations.
October Agreement Builds on Earlier BEL–Sahana Partnership
The AK-203 component agreement follows an earlier Memorandum of Understanding signed between Bharat Electronics Limited and Sahana Defence Limited on February 9, 2026.
Sahana System Limited confirmed the earlier agreement through a regulatory disclosure submitted to the National Stock Exchange of India.
The February MoU established a broad framework for cooperation across advanced defence and digital technologies.
The identified areas included electronic warfare, avionics, anti-drone technologies, cybersecurity, cloud infrastructure, digital governance and specialised enterprise platforms.
Under the arrangement, Sahana Defence intended to contribute its expertise in digital product engineering and related technologies, while BEL would provide experience in defence electronics, systems integration and programme execution.
The companies also identified opportunities to develop indigenous solutions for defence, government and civilian applications.
The October 12 Teaming-cum-Supply Agreement represents a more focused collaboration involving a specific defence manufacturing programme.
By moving into AK-203 component development, the two organisations have expanded their cooperation from a broad technology framework to a defined small arms manufacturing requirement.
India–Russia Joint Venture Supports Domestic Small Arms Production
The AK-203 rifle programme represents an important example of India–Russia defence industrial cooperation.
The two countries have maintained longstanding partnerships involving military equipment, technology transfer, joint production and defence research.
The Indo-Russian Rifles joint venture was established to develop a domestic manufacturing base for AK-203 assault rifles while progressively expanding India’s production capabilities.
The Korwa facility provides infrastructure for rifle manufacturing and creates opportunities for Indian companies to participate in component production and related industrial activities.
In February 2023, the Ministry of Defence informed Parliament that IRRPL had established the facilities required to commence indigenous production of AK-203 rifles at Korwa.
The ministry also emphasised that domestic manufacturing would contribute to greater self-sufficiency in assault rifles for India’s defence forces.
The participation of companies such as BEL and Sahana Defence reinforces this industrial objective by supporting the development of local suppliers within the manufacturing programme.
As more Indian enterprises acquire the capabilities required for specialised components, the AK-203 project can contribute to wider development of the country’s precision manufacturing sector.
Public and Private Sector Cooperation Strengthens Defence Supply Chains
India’s defence manufacturing strategy increasingly encourages cooperation between public-sector enterprises, private manufacturers, technology companies and research institutions.
Such partnerships allow organisations with different technical capabilities to contribute to common defence production requirements.
Public-sector enterprises bring established manufacturing infrastructure, programme management experience and familiarity with defence procurement standards. Private companies can contribute specialised technologies, engineering capabilities and flexible production resources.
The BEL–Sahana Defence collaboration reflects this approach by combining the capabilities of two organisations within a defined manufacturing programme.
Small arms production requires reliable supply chains capable of delivering components that meet consistent technical specifications. Strong coordination among suppliers is important for maintaining manufacturing efficiency and product quality.
Domestic partnerships also support the development of skilled employment in precision machining, product engineering, quality inspection and advanced manufacturing.
The expansion of these capabilities can benefit other areas of India’s engineering industry because the underlying skills and technologies have applications across multiple industrial sectors.
AK-203 Component Partnership Supports Atmanirbhar Bharat
The government’s Atmanirbhar Bharat initiative places considerable emphasis on strengthening domestic capabilities in defence manufacturing.
The policy encourages Indian enterprises to develop equipment, components and technologies that support the operational requirements of the armed forces.
Within the small arms sector, indigenisation involves creating a manufacturing ecosystem that extends from raw materials and precision components to assembly, quality assurance and production support.
The AK-203 programme provides an important industrial platform for developing these capabilities through cooperation among Indian and Russian enterprises.
BEL and Sahana Defence’s agreement contributes to this effort by supporting domestic development and manufacturing of critical rifle components.
The partnership also demonstrates how established defence manufacturers can work with private technology companies to broaden indigenous supply chains.
As Indian companies develop greater expertise in specialised engineering and manufacturing, the country’s defence industrial ecosystem gains additional capabilities to support present and future requirements.
BEL–Sahana Partnership Advances Indigenous Defence Manufacturing
The October 12, 2026, agreement between Bharat Electronics Limited and Sahana Defence Limited represents another step in strengthening India’s domestic defence manufacturing capabilities.
By collaborating on components and sub-assemblies for the AK-203 assault rifle, the companies are supporting the manufacturing programme undertaken by Indo-Russian Rifles Private Limited at Korwa in Uttar Pradesh.
The partnership brings together BEL’s established engineering and manufacturing experience with Sahana Defence’s technological capabilities. It also builds upon the broader defence technology cooperation initiated by the companies in February 2026.
The AK-203 manufacturing programme, covering more than six lakh rifles, provides a substantial foundation for developing indigenous industrial capabilities in precision engineering and small arms production.
Through partnerships involving public-sector enterprises, private manufacturers and specialised technology companies, India is building a more diversified defence production network.
The BEL–Sahana Defence collaboration strengthens this approach and contributes to India’s continuing efforts to expand domestic manufacturing, develop specialised engineering capabilities and advance self-reliance in defence production.
References
1. Bharat Electronics Limited — October 12, 2026.
BEL Signs Teaming-cum-Supply Agreement with Sahana Defence Limited for Co-Development of AK-203 Components.
Official corporate announcement, Bharat Electronics Limited.
https://www.linkedin.com/company/bharat-electronics-limited
2. Sahana Defence Limited — October 12, 2026.
Teaming Agreement with Bharat Electronics Limited for Development and Indigenisation of AK-203 Assault Rifle Components and Peripherals.
Official corporate announcement, Sahana Defence Limited.
https://www.linkedin.com/company/sahanadefence
3. Sahana System Limited — February 9, 2026.
Stock Exchange Disclosure: Sahana Defence Limited Signs MoU with Bharat Electronics Limited to Collaborate on Advanced Defence and Digital Technologies.
National Stock Exchange of India.
https://nsearchives.nseindia.com/corporate/SAHANA_09022026134908_Reg30CoveringLetterandPR.pdf
4. Ministry of Defence, Government of India — December 20, 2021.
Defence Agreement with Russia on Assault Rifles.
Press Information Bureau.
https://www.pib.gov.in/PressReleasePage.aspx?PRID=1783413
5. Ministry of Defence, Government of India — February 13, 2023.
Manufacturing of AK-203 Assault Rifles.
Press Information Bureau.
https://www.pib.gov.in/PressReleasePage.aspx?PRID=1898817
6. Bharat Electronics Limited — Official Website.
Corporate Profile, Defence Electronics and Manufacturing Capabilities.
https://bel-india.in
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