The decision comes ahead of Russian President Vladimir Putin’s scheduled visit to India beginning from December 5.
Under the nearly Rs 5,000 crore deal, the Indo-Russian joint venture will produce over six lakh AK 203 rifles over a period of 10 years at a manufacturing facility in Amethi in Uttar Pradesh.
The decision to clear the procurement was taken at a meeting of the Defence Acquisition Council (DAC) chaired by Defence Minister Rajnath Singh.
Vice Chief of Naval Staff, Vice Admiral Satish Namdeo Ghormade said the proposal will be placed before the Defence Acquisition Council in a 'short while'.
Key approvals accorded included helicopters, guided munition and rocket ammunition to cater to the need of the armed forces.
Sources confirmed that the Request for Proposal (RFP), to be issued to the Indian companies identified as Strategic Partners, will be discussed in a high level meeting slated for Friday.