The Centre has cleared a plan for the joint production of over five lakh AK-203 assault rifles with Russia ahead of President Vladimir Putin’s visit to India on December 6 for an annual summit with Prime Minister Narendra Modi, defence ministry sources said on Saturday.

The AK-203 assault rifles will replace the in-service Insas rifles inducted over three decades ago.

The sources said the deal, estimated at over Rs 5,000 crore, was scheduled to be signed on Monday during Putin’s visit.

Last week, India and Russia had announced that they would hold the maiden 2+2 dialogue of their defence and foreign ministers on the margins of the annual summit between Modi and Putin.

“The cabinet committee on security has approved the plan for the production of over five lakh AK-203 assault rifles at Korwa in Amethi, Uttar Pradesh, in a bid to provide a big boost to self-reliance in defence manufacturing in India,” a defence ministry official said.

The production, the official said, will be done in partnership with Russia and reflects the deepening collaboration between the two countries in the defence sector.

The 7.62X39mm caliber AK-203 assault rifles, with an effective range of 300 metres, are lightweight, robust and easy to use.

The sources said the rifles would enhance the operational effectiveness of the Indian Army in counter-insurgency and anti-terrorism operations.

The project will be implemented by a special purpose joint venture called Indo-Russian Rifles Pvt Ltd (IRRPL).

The approval for the joint production of AK-203 rifles has come amid Modi’s much touted Make in India campaign. Under the deal, AK-203 assault rifles will be made in India with transfer of technology from Russia.

Last year, the defence ministry had announced that it would stop importing 101 items, including weaponry, in a phased manner to try and strengthen the country’s fledging defence production industry under the Atmanirbhar Bharat initiative.

Military veterans have highlighted that the government’s push for self-reliance in the defence sector was aimed at increasing defence manufacturing in the country, but the government is yet to spell out how it will be achieved considering India does not have enough indigenous capability.

They have also pointed out that the 101 embargoed items comprising artillery, guns, sonar systems and light combat helicopter radars are still at various stages of development by the Defence Research and Development Organisation (DRDO).

“What is the point of such an embargo if material components continue to be imported and assembled in India? How can it lead to self-reliance in the defence sector if we continue to become hostage to import procurements,” a military veteran said.