Archive · 7 Sep 2026
India Firm Denies Defence Ministry Links Amid Estonia Ammunition Controversy
Indian officials said NECO Defence has no business with India’s Defence Ministry or armed forces.
They said the company may have supplied equipment to state police forces.
NECO Defence belongs to a group based in Nagpur that makes steel.
It recently bought a small Italian company called Datasel.
The company also has a factory in Romania.
That factory reportedly has a contract to fill artillery shells for Estonia.
The shells are intended to be sent onward to Ukraine.
The deal caused controversy in Estonia, and Defence Minister Hanno Pevkur said he would resign.
Indian defence officials said NECO Defence has no dealings or supply orders with the Ministry of Defence or Indian armed forces.
Officials said the company may have supplied equipment to state police forces, as claimed on its website.
NECO Defence is part of a Nagpur-based steel manufacturing group and recently acquired Italian ammunition company Datasel.
Its Romanian facility reportedly has a contract to fill artillery shells for Estonia for onward delivery to Ukraine.
Estonian Defence Minister Hanno Pevkur announced his resignation on September 2 amid controversy over the alleged arms deal.
- Who
- NECO Defence, Indian defence officials, Estonia, Ukraine, and former Estonian Defence Minister Hanno Pevkur.
- What
- Officials clarified that NECO Defence has no Ministry of Defence or Indian armed forces supply orders, amid controversy over an ammunition deal involving Estonia and Ukraine.
- When
- The Estonian deal was reportedly made in 2024; Hanno Pevkur announced on September 2 that he would step down.
- Where
- The companies involved include a Nagpur-based group, an Italian firm, and a manufacturing facility in Romania; the ammunition was intended for Estonia and Ukraine.
- Why
- The controversy concerns allegations that European Union funds were used to buy artillery shells from companies without a previous track record of producing them.
Official Clarification
Procurement Controversy
Indian government connection
Official Clarification
Indian defence officials said NECO Defence has no dealings or supply orders with the Ministry of Defence or Indian armed forces.
Procurement Controversy
The company was linked in reporting to an ammunition procurement arrangement involving Estonia, creating questions about its international role.
Ammunition supplier credentials
Official Clarification
Officials said the Romanian facility has a contract to fill shells for Estonia, without stating that NECO Defence supplied the shells directly from India.
Procurement Controversy
The controversy centred on allegations that European Union funds helped purchase artillery shells from companies with no previous track record of producing such weapons.
Accountability
Official Clarification
The Indian clarification separates NECO Defence from India’s defence procurement system, while acknowledging possible supplies to state police forces.
Procurement Controversy
The controversy contributed to Hanno Pevkur’s decision to step down as Estonian Defence Minister.
- Indian defence ties
- Officials said NECO Defence has no connection or dealings with the Ministry of Defence or Indian armed forces.
- Possible police supplies
- Officials said the company may have supplied equipment to state police forces, as claimed on its website.
- Company base
- NECO Defence is part of a Nagpur-based group involved in steel manufacturing.
- Recent acquisition
- NECO Defence recently acquired Datasel, described as a small Italian manufacturer of small arms and ammunition.
- Romanian facility
- The company has a manufacturing facility in Romania with a contract to fill artillery shells for Estonia.
- Reported payment
- Estonia reportedly paid 70 million euros upfront from the European Peace Facility for the 2024 purchase.
- Political consequence
- Hanno Pevkur announced on September 2 that he would step down as Estonian Defence Minister.