I´m just about to finish a PBEM-game (red vs. red) with a friend. On the 4. or 5. turn the battlefield was beginning to cover up with thick black smoke. I asked him how he managed to get smoke with the two 82 mm mortars we both had. He said (between some very intresting curses) that he had ordered a plain two mortar, medium done, anti-personnel shelling immediatly...
So there is smokegrenades, you just don't know when you get them. If you get them.