Nagpur: Indian manufacturers are charging a bomb for trinitrotoluene (TNT) — the most important ingredient that goes into the making of a variety of artillery and tank shells and even certain types of mines. Led by a huge global demand, which coincides with the war in Europe and the Middle East, TNT prices have touched 8.5 lakh a tonne as against the regular rate of 5.5 lakh a tonne, said sources in the industry.
There is a massive global demand for 155mm shells, which are fired from howitzers like Bofors guns. TNT goes into making these shells, so a high demand for 155mm and even tank ammunition has led to its rates shooting up.
The price hike took place over the last six months, with a gradual increase starting around a year ago. India emerged as a major exporter of ammunition. There are a limited number of manufacturers of TNT, apart from other high-energy materials like HMX and RDX.
The biggest manufacturer is the defence public sector undertaking — Munitions India Limited (MIL) which is headquartered in Pune, followed by two other major players, Solar Industries Limited and Special Blasts Limited (SBL). The plants of both companies are located in Nagpur. SBL, which recently inaugurated its facility at Katol, will exclusively cater to the foreign market initially.
MIL, due to its size, continues to dominate the market, said sources. A source in one of the private manufacturers said even rates of RDX and HMX have gone up to similar levels, the source said. “There are limited players in the country, and the world is looking up to India to meet its demands. The rates are bilaterally negotiated with the buyer. Due to high demand, it’s a sellers’ market these days,” a source said.
However, MIL, which was formed out of the erstwhile ordnance factories, continues to supply the armed forces at the earlier rates fixed on a long-term basis. The escalation is only being passed on to foreign buyers, a source said.
Even MIL is now scaling up its capacity, with a new plant to come up. This would be a purely indigenous setup. Two other major corporates are also entering the sector, which is expected to ease the supply in the longer term, a source said.
