Seven new defence public sector undertakings (PSUs), carved out of the erstwhile Ordnance Factory Board (OFB), were dedicated to the nation by Prime Minister Narendra Modi as part of a major reform initiative to boost India's defence production.

The defence ministry said the companies commenced work on October 1. 

Modi, referring to the ‘Aatmanirbhar Bharat’ campaign, said the goal is to make the country the world’s biggest military power on its own.

Restructuring of the OFB

• The Union Cabinet on June 16 had approved a long-pending proposal to restructure the over 200-year-old Ordnance Factory Board that operated 41 ammunition and military equipment production facilities into seven state-owned corporate entities to improve its accountability, efficiency and competitiveness.

• The OFB was dissolved on October 1 and its assets, employees and management were transferred to the seven companies.

The seven new defence PSUs are:

• Munition India Ltd

• Armoured Vehicles Nigam Ltd

• Advanced Weapons and Equipment India Ltd

• Troop Comforts Ltd

• Yantra India Ltd

• India Optel Ltd

• Gliders India Ltd.

Defence Minister Rajnath Singh said the government will provide support to the companies initially through financial and non-financial interventions if required.

Ordnance Factory Board

• Ordnance factories in India are one of the oldest and largest industrial setup which functioned under erstwhile Ordnance Factory Board (OFB) with the objective of achieving self-reliance in equipping the Armed Forces with state-of-the-art battlefield equipment.

• The first ordnance factory, now known as the ‘Gun and Shell Factory’ at Cossipore in Kolkata was established in 1801. 

• There were 18 ordnance factories in India before the country’s Independence in 1947. 

• The Ordnance Factory Board (OFB) came into existence on April 2, 1979 in Kolkata.

• OFB was functioning under the administrative control of the department of defence production of the ministry of defence.

• Indian ordnance factories, headquartered at Kolkata, is a conglomerate of 41 factories, 9 training institutes, 3 regional marketing centres and 4 regional controllers of safety.

• They are engaged in the production of a range of arms, ammunition, equipment, clothing, etc primarily for the Armed Forces of the country. 

• Every year, March 18 is celebrated as Ordnance Factories Day in India.

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