After a long wait, the Nalanda ordnance factory will finally be set up with Israeli help and will come up over a period of three years. The Bi-Modular Charge System factory will be set up at a cost of Rs 1,200 crore and will have five units to manufacture ammunition for the Army's 155 mm Bofors artillery guns.

The agreement to set up the factory was signed between the Ordnance Factory Board and Israel Military Industries last week. The IMI was selected for the project after a global tender was floated following the controversy involving the South African Denel firm. Denel had originally been selected to start the factory and initial payments had also been made when it was blacklisted following corruption charges. Subsequently the company was banned.

After a year-long selection process, IMI was short

listed and the Cabinet Committee on Security gave its approval for signing the deal in January this year. The move

is due to make India self-reliant in the field of artillery

ammunition.