The Ministry of Defence on Friday issued an official statement highlighting the provisional profits achieved in the first six months of their business.

Since the time they were formed, six out of the seven companies formed out of the Ordnance Factories have reported a turnover of more than Rs 8, 400 crore. The Ministry of Defence on Friday issued an official statement highlighting the provisional profits achieved in the first six months of their business. They have secured domestic contracts of over Rs 3000 crore and in exports the orders are almost worth Rs 600 crore.

Which were the seven companies dedicated to the nation in 2021?

Yantra India Limited (YIL)

Munitions India Limited (MIL);

Armoured Vehicles Nigam Limited (AVANI);

Advanced Weapons and Equipment India Limited (AWE India);

Troop Comforts Limited (TCL); India Optel Limited (IOL);

Gliders India Limited (GIL).

All companies except Yantra India Limited have reported provisional profits and according to the Ministry of Defence, Munitions India Limited bags one of the biggest ever export order of ammunition of Rs 500 crore

According to the Ministry of Defence statement which was issued on April 29, 2022:

Last year, as has been reported, various steps were taken by the government to handhold and support these new companies initially. In fact all the outstanding indents with the erstwhile Ordnance Factory Board (OFB) were grandfathered. And these were then converted into deemed contracts at a value of Rs 70,776 crore.

Before the commencement of business date, against the targets for Financial Year 2021-22, the government had credited Rs 7,765 crore to the new companies as 60 percent mobilisation advance. During the current financial year for capital expenditure and equity, an amount of Rs 2,765.95 crore has been released to these new companies. And, their performance is being constantly monitored by the Department for any timely intervention if required to ensure that the objectives of corporatisation of the OFB are met fully.

Several measures have been initiated by these new companies to ensure optimal utilisation of their resources and cost reduction, which has helped in making cumulative savings of about 9.48 per cent.

Compared to the value of issue of the OFB during the previous financial years, the turnover of more than Rs 8, 400 crore, is significant. These companies are making efforts to develop new products through collaborative as well as in-house efforts. The YIL has also bagged orders worth Rs 251 crore from the Indian Railways for axles.

https://www.financialexpress.com/defence/boost-for-make-in-india-in-defence-newly-formed-companies-achieve-a-huge-turnover/2508047/