Ordnance Factory Board split into seven new defence companies
Moneylife Digital Team 16 October 2021
The government has decided to convert the Ordnance Factory Board (OFB) from a department, into seven fully government-owned corporate entities to improve self-reliance on the country's defence preparedness. The seven new defence companies that have been incorporated are Munitions India Limited (MIL), Armoured Vehicles Nigam Limited (AVANI), Advanced Weapons and Equipment India Limited (AWE India), Troop Comforts Limited (TCL), Yantra India Limited (YIL), India Optel Limited (IOL), and Gliders India Limited (GIL), the PMO’s statement read.
 
This corporatisation of companies will enhance autonomy and efficiency and will unleash new growth potential and innovation, thee government said in a release.
 
According the government, there have been crucial developments in the local artillery sector over the last decade. There are now four gun production hubs in five states in the country. Firms like L&T, Tata Advanced Systems and Bharat Forge have set up gun production lines within the country to compete with the erstwhile monopoly, state-owned ordnance factories.
 
The army’s DG (artillery), Lt General TK Chawla, had earlier said that the Army was supporting the domestic industry to ensure indigenous projects like the Advanced Towed Array Gun System and the OFB-produced Dhanush howitzer meet their requirements. This year, as part of its defence indigenisation drive, the Ministry of Defence banned the imports of 155 mm howitzers after December 2021. The army will have no choice but to turn to the indigenous gun industry.
 
The seven new companies are expected to provide a boost to the defence sector in the country.
 
Addressing the launch event of these companies on the occasion of Vijaya Dashami, PM Modi said, “India is taking new resolutions to build a new future. The decision to revamp 41 ordnance factories and the launch of these seven companies is a part of this resolution journey. This decision has been pending for the last 15-20 years."
 
Pointing out that India's ordnance factories were the most powerful globally at one period of time, Prime Minister Modi said that these factories had the experience of more than 100 to 150 years.
Comments
id12345
3 months ago
ARMY , NAVY AND AIRFORCE .........NEED TO BE PRIVATISED FIRST. LET INDIA BE THE FIRST TO DO THIS RADICAL REFORM....!

JUST BY FORMING COMPANIES EFFICIENCY OR INNOVATION CANNOT BE ACHIEVED........FOR WHICH MUCH MORE REQD........WHICH IS NOT AVAILABLE IN INDIA BY DESIGN.....!
hardik.mehta.3009
Replied to id12345 comment 3 months ago
When I read “ARMY , NAVY AND AIRFORCE .........NEED TO BE PRIVATISED FIRST" ... I can't stop laughing. Do you think it's for your country protection? It's business. World most powerful army (USA) stay in Afghanistan for 20Yr for peace. After 20yr result is in front of you. It's all business. Don’t be yourself full. Don’t waste your time. Stay focus in your work and do something for your family.
id12345
3 months ago
PRIVATISATION IS A MUST FOR INDIAN ECONOMY.
BUT PRIVATISING DEFENCE THROUGH PSU FORMATION NOT OF MUCH USE...
IN INDIA DEFENCE IS SEEN A JUICY BUSINESS BY THE PVT SECTOR.......WHICH IS INCONSISTENT WITH THE CURRENT GEOPOLITICAL CONTEXT......
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