Solar Industries, a leading explosives and ammunition manufacturer, along with a defence PSU, are expected to undertake the production of these systems.
Cabinet Committee on Security has cleared the project to buy over Rs 10,000 crore worth of ammunition for the Indian Army's Pinaka multi-barrel rocket launcher systems.
A British-made rocket will attempt to reach space from home soil for the first time later this year, with the project going ahead after receiving £20m in taxpayer funding.