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Only Transfer of Technology Fees, No Royalties henceforth: India tells Russia

Source : RAUNAK KUNDE / NEWS BEAT / IDRW.ORG.

Only Transfer of Technology Fees, No Royalties henceforth: India tells Russia
Russian Sukhoi Su-30MKI plant of Hindustan Aeronautics Ltd (HAL) in Nashik, Maharashtra (File Photo)



India-Russia Inter-Governmental Commission on Military and Military-Technical Cooperation (IRIGC-M&MTC) signed, including a contract to manufacture over six lakh AK-203 assault rifles. The deal is worth Rs 5,124 crores and these guns will be produced at Korwa, in UP’s Amethi, but in the first of its kind of deal between the two countries, India has paid only Transfer of Technology (ToT) fee for acquiring a local manufacturing license of these guns and won’t be paying any Royalties for the guns that are manufactured and guns that are brought over the contracted units nor it will pay any royalties if the guns are sold to other customers.

India has told Russia that all future weapon deals between the two countries will only involve only ToT fee for acquiring a local manufacturing license and India will henceforth not pay any Royalty payment for each unit that is manufactured here in India locally. India in all previous deals had to pay ToT Fee plus a Small Royalty fee for each unit that was manufactured for the whole system or the spares and components that were locally produced.

With Royalty margin gone, Made in India future Russian weapons and systems including spares and components will cost marginally less per unit but in long term, it will save valuable foreign exchange for India.

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