According to the official, OFB will be divided into 7 different corporate companies run by the government.
New Delhi| Prime Minister Narendra Modi held a cabinet meeting on Wednesday. In which a major decision related to defense has been taken. The government has approved the bifurcation of the Ordnance Factory Board (OFB) into separate corporate entities. At present, this board runs 41 ordnance factories in the country and is attached to the Ministry of Defense.
An official associated with the meeting said that the government has taken this decision to increase the capacity of the largest board making military equipment and weapons in the country. The central government was also thinking of taking this step for a long time. Defense Minister Rajnath Singh called this move historic and said that it is very important for the security of the country.
How Will OFB Be Divided?
According to the official, OFB will be divided into 7 different corporate companies run by the government. Under these, 41 ordnance factories will now be run. The central government has said that not a single employee will be affected by this decision. With this decision, OFB will cease to exist and 7 corporate entities will manufacture ammunition, vehicles, weapons, equipment, electronic gear, military necessities and parachutes etc.
Currently, the ordnance factories manufacture tanks, armored vehicles, landmine defense vehicles, bombs, rockets, artillery guns, anti-aircraft guns, parachutes, small arms, besides clothing and leather equipment for soldiers. With the new decision, the ordnance factories will be transformed into more productive and profitable companies.
An official said that the step has been taken in line with PM Modi’s policy of self-reliant India.
What Prompted The Decision?
According to experts, the new setup of OFB will be ready by the end of this year. The shortcomings which were lagging in the old structure will be removed in the new setup. As such, the supply chain will be made more effective. Along with this, by giving incentives to the new 7 companies, they will also be made more competitive. Over the past two decades, several high level committees have also emphasized that the functioning of OFBs should be reformed. Along with this, the factories working under it should also be self-sufficient.
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