A MoU has been signed between EEL and the Maharashtra government for a massive defence project

In a significant boost to India’s defense and industrial sectors, Economic Explosives Ltd. (EEL), a core company of Nagpur-based Solar Group, signed a Memorandum of Understanding (MoU) with the Maharashtra government during the World Economic Forum (WEF) Summit at Davos. This agreement underscores the state’s strategic focus on advancing the defense and aerospace industries.

EEL, the country’s leading manufacturer and exporter of explosives and high-energy materials, plans to establish an ‘Anchor Mega Project’ as part of Maharashtra’s “Aerospace and Defence Policy.” This ambitious initiative aligns with the “Atmanirbhar Bharat” vision, aiming to boost India’s self-reliance in critical defense technologies. The project will prioritize the production of advanced defense products, including propellants, warhead explosives, ammunition, drones, UAVs, defense electronics, and next-generation explosive systems. Additionally, plans include the development of military transport aircraft and high-energy materials for propellants and ammunition.

Building on the success of EEL’s earlier Mega Project under the 2018 Aerospace and Defense Policy, which saw an investment of ₹1,350 crore (₹800 crore utilized by December 2024), this new initiative involves a substantial ₹12,780 crore investment. The project falls under Maharashtra’s “Thrust Sector Incentive Scheme” and will be based in a backward region of the state, driving socio-economic growth and generating employment.

“This Anchor Mega Project is a landmark step toward enhancing India’s indigenous capabilities in defense and aerospace,” an EEL spokesperson stated. It is expected to fuel innovation, reduce import dependency, and strengthen local manufacturing capabilities, bolstering India’s position in global defense markets.

Meanwhile, MSN Holdings Ltd., also based in Nagpur, signed an MoU with the Maharashtra government at Davos to establish an advanced lithium battery and cell manufacturing facility under the “Ultra Mega Project” initiative. With an investment of ₹14,652 crore, this project will create approximately 8,760 direct and indirect jobs in the Vidarbha region.

The state-of-the-art facility, developed in collaboration with a leading European company, will manufacture advanced lithium batteries designed to reduce costs and weight while enhancing export potential. By fostering an ancillary industrial ecosystem, this initiative is set to transform the region’s industrial landscape and contribute significantly to socio-economic development.