Prime Minister Narendra Modi will on October 15 formally launch seven new defence companies carved out of the Ordnance Factory Board (OFB), four months after Union Cabinet cleared the board’s corporatisation to boost its efficiency and competitiveness in a long-awaited reform in the country’s defence manufacturing sector, officials familiar with the development said on Monday.
The new companies will be formally launched through video conference on the occasion of Vijayadashami, also known as Dussehra. The government issued an order last month, dissolving OFB with effect from October 1.
The OFB, which earlier controlled 41 ordnance factories, has been split into seven government-owned entities that will produce ammunition and explosives, vehicles, weapons and equipment, troop comfort items, opto-electronics gear, parachutes and ancillary products.
These new companies have been named Advanced Weapons and Equipment India Limited, Troop Comforts Limited, India Optel Limited, Munitions India Limited, Avani Armoured Vehicles, Gliders India Limited and Yantra India Limited.
“All the indents previously placed on the OFBs by various services, CAPFs and state police have been converted into deemed contracts. These deemed contracts numbering 66 have a cumulative value of more than ₹65,000 crore,” said one of the officials cited above.