Lokesh machines seeks removal from US sanctions list

Hyderabad: Nearly three months after it was sanctioned by the US govt over allegations of links to Russia, Hyderabad-based CNC machines manufacturer Lokesh Machines has now approached the US govt seeking its removal from the sanctions list.The company, which developed and manufactured India's first privately made indigenous sub-machine gun ASMI for the Indian Army, filed an application before the Office of Foreign Assets Control (OFAC), US Department of Treasury just days after President Donald Trump took the helm."Lokesh Machines Ltd has, through its US-based lawyers, filed an application before OFAC for expedited removal or reconsideration of designation on the list of specially designated nationals and blocked persons," the company said in a regulatory filing.The appeal comes after the company's auto components business also took a hit when long-time customer Mahindra & Mahindra cut ties with the company late last year. The loss of M&M business is expected to impact nearly 8% of the company's total revenue compared to the financials of the last fiscal year.Lokesh Machines has been looking to add other customers, especially in the defence sector, to compensate for the loss of business arising from M&M's decision to end its longstanding relationship with the company, which was the first supplier of engine blocks for the Indian auto giant's comeback vehicle – the Scorpio.The company in Sept 2024 already supplied 550 units of the 9x19 mm calibre ASMI to the Northern Command, making ASMI the first 100% indigenous weapon to be inducted into the Indian Army.Lokesh Machines got the basic design of ASMI from Armament Research & Development Establishment (ARDE) Pune and the Indian Army, after which it developed it further and manufactured it at its facilities in Hyderabad.ASMI, which is short for Asmita, meaning courage and pride in Sanskrit, beat competition from internationally renowned SMGs such as Uzi, which is manufactured by Israel Weapon Industries (IWI), and German firearms manufacturer Heckler & Koch's MP5 to snag this order.