Indian government clarifies company’s defence links

An Indian company linked to a controversial ammunition procurement deal in Estonia has no contracts or supply orders with India’s Ministry of Defence or the country’s armed forces, defence officials said on Monday, amid growing scrutiny of the European deal.

The clarification comes after Neco Defence Munitions, an Indian-controlled company, was linked to an ammunition procurement arrangement in Estonia involving artillery shells intended for onward delivery to Ukraine. The controversy has already led to the resignation of Estonian Defence Minister Hanno Pevkur. 

Indian defence officials said Neco Defence has no dealings with the Ministry of Defence or the Indian armed forces. They added that the company may have supplied ammunition to state police forces, as claimed on its website, but stressed that this is separate from any procurement by the central defence establishment. 

Company’s Estonia connection

The controversy centres on a €70 million ammunition procurement programme in Estonia, funded through European Union resources and intended to support Ukraine.

According to reports, Estonia’s Centre for Defence Investments entered into an arrangement with Datasel S.R.L., an Italian-registered company that was acquired by Neco Defence Munitions in 2024. The deal subsequently came under scrutiny over the supplier’s limited track record in artillery ammunition and problems surrounding delivery. 

The Indian connection in the controversy therefore relates to ownership of the company involved in the European transaction, rather than to an Indian government or Indian military procurement contract.

Estonia faces ammunition procurement controversy

The deal became a major political issue in Estonia after questions were raised over the procurement process, advance payments and the failure to deliver ammunition as expected.

Estonia reportedly paid about €70 million in advance, while subsequent problems led to disputes over the contracts and the money. The country has sought recovery of funds and has indicated that legal and arbitration proceedings could follow. 

An audit also raised wider concerns about the management of defence procurement and finances. The controversy contributed to Pevkur’s decision to resign, with the minister taking political responsibility for the outcome while maintaining that he was not personally responsible for the details of the transaction. 

No Indian military procurement link

The clarification from Indian defence officials is significant because the European controversy could otherwise create an impression that the company had an established relationship with India’s military procurement system.

Officials said that is not the case. Neco Defence has no contracts or supply orders from the Indian armed forces, nor does it have transactions with the Ministry of Defence, according to the clarification reported on Monday. 

Any reported dealings with state police organisations would fall under a different procurement framework and should not be conflated with contracts issued by the Ministry of Defence.

Questions remain over European deal

The controversy in Estonia is now focused on how the ammunition contract was awarded, the supplier’s previous manufacturing experience, the payments made and the subsequent failure to fulfil the arrangement.

Reports have said the supplier had no previous record of selling artillery ammunition when the deal was concluded. Estonia has since faced questions about procurement oversight and the use of EU funds for the Ukraine-related purchase. 

The episode has also drawn attention to the growing international defence industry, where private companies can participate in cross-border procurement through subsidiaries, acquisitions and intermediary firms.

Indian defence sector remains separate

For India, the immediate clarification from defence officials draws a line between the Estonian procurement controversy and the country’s own military acquisition system.

Neco Defence’s reported ownership of the company involved in the Estonian transaction does not establish any connection with Indian military procurement. Officials have specifically stated that there are no Ministry of Defence contracts or supply orders involving the company.

The clarification comes as Estonia continues to deal with the political and financial fallout from the ammunition controversy, while questions over the European procurement process remain under investigation.

The Ministry of Defence has acknowledged a proposal seeking the creation of a dedicated Bastar Regiment in the Indian Army, responding to a request made by Chhattisgarh Deputy Chief Minister Vijay Sharma. Defence Minister Rajnath Singh has informed Sharma that the proposal has been received and is currently under examination.

The development follows a letter sent by Sharma to the Defence Minister on June 26, 2026, urging the Centre to establish a Bastar Regiment in recognition of the courage and service of tribal youth from the Bastar region. In his communication, Sharma highlighted the role played by local tribal communities in supporting security forces and contributing to anti-Naxal operations in one of the country's most challenging conflict zones.

In a reply dated July 9, 2026, Defence Minister Rajnath Singh confirmed that the proposal had reached the ministry and stated that it was undergoing the prescribed process of examination. While the response does not indicate any final decision, it confirms that the request is being officially considered.

Proposal Highlights Tribal Contribution

In his letter, Sharma argued that tribal youth from Bastar have consistently demonstrated bravery while working alongside security forces in counter-insurgency operations. He maintained that creating a Bastar Regiment would not only recognise their contribution but also strengthen national security by drawing upon the region's familiarity with difficult terrain and operational conditions.

The Deputy Chief Minister also suggested that such a regiment could serve as a symbol of pride for the region while encouraging greater participation of local youth in the armed forces.

Employment and National Service

According to Sharma, establishing a Bastar Regiment could open more opportunities for young people from the region to join the Indian Army. He said it would promote values such as discipline, patriotism and national service while creating a stronger connection between the armed forces and the tribal population.

The proposal has also been shared publicly through Sharma's official social media accounts, where he posted both his letter to the Defence Minister and the ministry's response.

No Final Decision Yet

The Defence Ministry has not announced any decision regarding the formation of a new regiment. Its communication merely confirms receipt of the proposal and states that the matter is under review in accordance with official procedures.

The Indian Army traditionally raises regiments based on a range of operational, administrative and historical considerations. Any decision to create a new regiment involves multiple levels of assessment within the Ministry of Defence and the Army headquarters.

Hope Among Bastar Residents

Although no approval has been granted, the ministry's acknowledgement has generated optimism among residents of Bastar. Supporters of the proposal believe that a dedicated regiment could provide greater representation for tribal youth in the armed forces while recognising the region's long-standing contribution to national security efforts.

The proposal comes against the backdrop of continued anti-Naxal operations in Bastar, where local recruitment into security forces has often been viewed as an important element in strengthening regional stability and creating employment opportunities.

Whether the proposal ultimately translates into the formation of a new regiment will depend on the outcome of the ongoing examination by the Defence Ministry and the Indian Army.

Defence Minister Rajnath Singh on Saturday delivered a strong message to Pakistan while commemorating the 27th Kargil Vijay Diwas, asserting that any future dialogue with Islamabad would be limited to the issue of Pakistan-occupied Kashmir (PoK). Addressing a gathering at the Kargil War Memorial in Dras, Singh said India remains fully prepared to counter any security challenge and warned against continued cross-border terrorism and infiltration.

Tribute to Kargil Heroes

The Defence Minister paid floral tributes to the soldiers who laid down their lives during the 1999 Kargil conflict. He said Kargil Vijay Diwas is not merely a commemorative date but a symbol of courage, sacrifice and patriotism that continues to inspire every Indian.

Singh recalled how Indian armed forces successfully repelled Pakistani intruders during Operation Vijay, reclaiming strategic mountain peaks under extremely difficult conditions.

'Talks Only on PoK'

Sending a clear diplomatic message to Pakistan, Singh said India has consistently sought peace but will not compromise on its sovereignty.

He stated that if bilateral talks are held in the future, they would focus only on Pakistan-occupied Kashmir, reiterating India's long-standing position that PoK is an integral part of India under illegal occupation.

Warning Against Terrorism

The Defence Minister accused Pakistan of continuing to rely on terrorism, infiltration and proxy warfare despite changing global realities.

He said that while India is focusing on development, innovation and technological advancement, Pakistan has failed to abandon policies that encourage cross-border terrorism. Any attempt to threaten India's peace or territorial integrity, he added, would receive a firm response from the Indian armed forces.

Operation Sindoor Mentioned

Rajnath Singh also referred to Operation Sindoor, saying the operation delivered a decisive blow to terrorists and their supporters. He said the success of the mission demonstrated India's resolve to respond strongly to threats against national security.

Armed Forces Being Modernised

Highlighting the government's focus on military modernisation, Singh said continuous efforts are being made to equip the armed forces with advanced technology, indigenous defence systems and better training.

During the event, demonstrations of drones, robotic mules and martial arts drills by the armed forces were also showcased. Cultural performances celebrating Ladakh's heritage were organised, followed by the traditional 'Shaurya Bhoj' attended by military veterans, gallantry award winners, families of martyrs, senior defence officials and local residents.

The Defence Minister said the bravery and sacrifice of the Kargil heroes continue to strengthen India's resolve to safeguard its borders and national interests.

‘Operation Sindoor was stopped voluntarily’: Rajnath rules out nuclear fear  

Defence Minister says India called off Operation Sindoor on its own terms, asserts readiness for long conflict if needed.  

Defence Minister Rajnath Singh on Thursday said India voluntarily halted Operation Sindoor and was not forced into the decision by Pakistan’s nuclear threats. Speaking at the ANI National Security Summit 2.0 in the capital, Singh described the operation as a deliberate, measured response — not a sign of hesitation.  

No pressure from nuclear threats  

Singh rejected suggestions that Islamabad’s nuclear brinkmanship influenced the government’s calculus. “Pakistan had threatened a nuclear attack, but India was not afraid of it,” he said. The Minister added that the Indian Army’s surge capacity — its ability to rapidly escalate troop and firepower strength — is now stronger than ever before.  

Operation timeline and scale  

India launched Operation Sindoor on May 7 last year, hours after a terrorist attack in Pahalgam killed several tourists. According to military assessments shared by officials, the operation struck nine major terrorist launchpads across Pakistan and Pakistan-occupied Jammu and Kashmir. Over 100 militants were reportedly killed in the cross-border strikes.  

“This was a turning point,” Singh said. “It showed the world that India is no longer a country that only makes statements, but one that takes direct action.”  

‘Long conflict’ readiness  

Without naming specific scenarios, the Defence Minister said India is fully prepared for a protracted engagement against Pakistan if circumstances demand. “We stopped on our terms, voluntarily,” he reiterated. “If needed, we are ready for a long conflict.”  

Sources familiar with the matter told reporters that the decision to end the operation was based on achieving tactical objectives — not external pressure.  

Terrorism’s root cause  

Singh drew a sharp contrast between the two neighbours. “India is known today for Information Technology. Pakistan is seen as the centre of ‘IT’ — International Terrorism,” he said.  

The Defence Minister stressed that terrorism cannot be eliminated without uprooting its ideology and political patronage. “The root lies in its ideology and political support. Without removing this, terrorism cannot be fully wiped out,” he added.  

Clear policy under PM  

Singh said the government’s post-Uri and post-Pulwama doctrine remains unchanged: no terrorist attack will go unanswered. Under the Prime Minister’s leadership, he added, direct action will follow if needed — without seeking permission or signalling intent beforehand.  

What next  

While cross-border calm has largely held since the operation wound down early this summer, officials indicate surveillance along the Line of Control remains heightened. Intelligence inputs suggest Pakistan has not fully vacated forward launchpads, though no fresh mobilisation has been detected in recent weeks.