Sunita Tools Limited has entered into an interim sales agreement for the supply of 2,40,000 empty NATO Spec and Standard 155mm M107 artillery shells. The agreement provides for a fixed supply schedule of 10,000 units per month over a period of 24 months.
As per the terms of the contract, the total quantity of 2,40,000 empty artillery shells will be delivered across two years, with a defined monthly supply rate. The agreement includes a limited grace period within the overall 24-month timeline. Supplies are scheduled to commence once procedural formalities are completed and the required advance payment is received.
The payment structure is based on a rolling 50 % advance covering three months of supply. Monthly deliveries will be paid prior to dispatch after adjusting the relevant month’s advance. The company has indicated that approximate monthly billing of around INR 24 crore will begin after completion of formalities and receipt of advance funds.
The buyer under the agreement is registered with the Department for Promotion of Industry and Internal Trade (DPIIT). The buyer will issue DP02 documentation and take supplies until Sunita Tools’ own DPIIT registration is in place.
The agreement is non-exclusive in nature, allowing Sunita Tools to allocate part of its production capacity to other customers if required. The contract relates specifically to the supply of empty NATO standard 155mm M107 artillery shell bodies and does not cover filled ammunition.
The interim sales agreement establishes a defined supply schedule, payment structure, and delivery framework for the specified quantity over the agreed period.