Prime Minister Narendra Modi will dedicate the seven new defence companies which were shaped out of the Ordnance Factory Board to the nation on Friday.
The authorities has determined to convert the Ordnance Factory Board from a authorities division into seven 100 per cent government-owned company entities as a measure to enhance self-reliance within the defence preparedness of the nation.
The transfer is aimed to carry enhanced purposeful autonomy, effectivity and to unleash new development potential and innovation.
The seven new defence companies 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).
In 2019, the federal government had determined to corporatise the Ordnance Factory Board (OFB). Consequent to the choice of the federal government to convert the OFB, the federal government had constituted an Empowered Group of Ministers (EGoM) below the chairmanship of Defence Minister Rajnath Singh to oversee and information your complete course of, together with transition assist and redeployment plan of staff whereas safeguarding their wages and retirement advantages.
Earlier, the OFB managed 41 factories, using over 70,000 folks. It had an annual turnover of about Rs 19,000 crore. All of that is now distributed into seven defence public sector items (DPSUs).
The staff belonging to Groups A, B and C of the dissolved OFB from each manufacturing and non-production items have been transferred to the new DPSUs.
Four committees had been arrange since 2000 to counsel reforms within the defence sector, and besides the one shaped by former Defence Minister Manohar Parrikar, the opposite three — TKS Nair Committee (2000), Vijay Kelkar Committee (2005), and Vice Admiral Raman Puri Committee (2015) — had favoured corporatisation of OFB.