No Defence Ministry Ties for Indian Firm in Estonia Ammunition Row

The Indian company linked to a European ammunition procurement controversy has no business relationship with India's Ministry of Defence or its armed forces, senior officials said on Monday.

The clarification follows the resignation of Estonia's Defence Minister Hanno Pevkur, who stepped down amid a political row over a €70 million (roughly Rs 769 crore) artillery shell purchase intended for Ukraine. The deal has also drawn scrutiny over financial management within Estonia's defence establishment.

The procurement was routed through Datasel S.R.L., an Italian-registered firm acquired in 2024 by Neco Defence Munitions, an Indian entity. Estonia's Centre for Defence Investments had made advance payments of about €70 million for the ammunition, with funding sourced from the European Union's European Peace Facility, according to Estonian media reports.

Ministry officials identified Neco Defence as part of a Nagpur-based steel manufacturing group owned by Anand Jaiswal and Siddharth Jaiswal. The company recently bought Datasel, a small Italian arms and ammunition maker, and operates a manufacturing facility in Romania. This Romanian unit holds a contract to fill artillery shells for supply to Estonia, which were destined for Ukraine.

Officials stressed that neither the Ministry of Defence nor the Indian armed forces have placed any supply orders with the company. They noted that the firm may have supplied state police forces, as claimed on its website.

Separately, Jayaswal Neco Industries, the listed Indian steelmaker, has clarified that Datasel is not its subsidiary or associate. The company stated that Datasel is owned by Neco Defence Munitions, a separate promoter-owned entity, and that the Estonian procurement dispute has no financial impact on its books.

Estonian reports have also noted that neither Datasel nor Neco had prior experience in producing artillery shells when the contracts were originally signed.