Kompromat
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Pretty low requirements. These are effectively IWI Galil rifles. At least 30 year old technology.
Cost is not a priority, requirements are. OFB also has to compete in the tender with a proper rifle.
https://www.deccanherald.com/national/ordnance-factory-readies-681623.html
Earlier this year, the defence ministry approved a plan to procure nearly 8.1 lakh assault rifles and almost four lakh carbines for close quarter battle.
Out of the total requirement close to 72,400 assault rifles and 93,895 carbines are to be procured on fast track basis to enable the forces to meet their immediate requirement.
Of the remaining 7.3 lakh assault rifles, OFB is assured of an order of 1.8 lakh rifles, if the weapon satisfies the army. The board can also make a bid for the remaining 5.5 lakh rifles for which a Request for Information was floated by the Army headquarters in February 2018.
OFB's orders are not assured.