Okay...so apparently, the Kerala Police is purchasing 500 INSAS rifles (I'm assuming they're the 1B folding-stock variant) and about 1.51 lakhs of associated ammo (I'm assuming 5.56x45mm Ball aka FMJ) from beloved Ordnance Factories:
Kerala Police to purchase 500 guns, 1.5 lakh bullets
Now, the appalling thing here is the pricing of these items. The 500 INSAS are reportedly coming in for a total value of Rs. 3.84 crores, while the 151,000 rounds are for an additional Rs. 76.13 lakhs. Which means...
3.84 crores = $535,276
meaning a per unit price of
$1,070 (Rs. 77,000) for each of the 500 rifles. Now this is stunning in of itself, till now I was under the impression that the maximum price demanded for INSAS was around $700 (Rs. 50,000) for the newer 1B1 variants for Army though I did not have the data to prove it. The amount being charged by OFB here is more than TWICE the price the US Army pays for its new M4A1s manufactured by FN which are bought for about $473 a piece (thanks to bulk order, otherwise they cost over $1k).
A decent Palmetto State DI AR-15 can be had in RETAIL for $450-500 or thereabouts, even a $200 tax stamp for conversion (not that INSAS has full-auto mode) doesn't bring it to close $1k.
Now, INSAS has been in mass production for long time, so the argument that 500 order was too small doesn't make sense - we know this isn't the first order for INSAS rifles in country, not even for this particular variant.
The second shocker is the price of the ammo...
76.13 lakhs = $106,269
Which comes to about
70 cents per round of 5.56 Ball...another blatant rip-off. The price of this ammo should be ideally in the region of about 35 cents per round in retail (
@Milspec may confirm/deny), with possibility of going down to between 20-25 cents for bulk orders like these. What makes OFB ammo so costly is beyond me (OFB ammo, which according to many is notorious for often being overgassed -quantity of powder above spec- and having poor purity of the powder on top of it).
I don't know for how much longer OFB will be allowed to openly fleece its customers this way, everyone from Army, CAPFs to State Police Depts are spending way too much of their Capital expenditures to procure what is at its core a not-so-great rifle, with little to no modern features whatsoever (no rails, no adjustable length stock, crappy 20-round magazine, excessive length & weight etc. etc.).
I guess for as long as we have no other viable alternative to produce arms & ammunition in the country - part of the reason why I always advocate private sector participation and Govt support for those ventures in this industry.
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