These new companies have been formed after the government approved the dissolution of the existing Ordnance Factory Board (OFB), which have been created to ensure efficiency, better quality, competitiveness and boost exports.
Prime Minister Narendra Modi dedicated seven new Defence PSUs to the nation on the auspicious occasion of Vijayadashmi (October 15, 2021).
These new companies have been formed after the government approved the dissolution of the existing Ordnance Factory Board (OFB), which have been created to ensure efficiency, better quality, competitiveness and boost exports.
All the seven companies will be producing parachutes, troop comfort items, weapons, vehicles, ammunition, opto-electronics gear and more for the use of the three services, State police as well as Central Armed Police Force (CAPF).
Background
Through a government notification, the OFB was dissolved with effect October 1, 2021 and seven new companies Yantra India Limited, Armoured Vehicles Nigam Ltd., India Optel Ltd., Troops Comforts Ltd., Advanced Weapons and Equipment India Ltd, Gliders India Ltd., and Munitions India Ltd., were given the pending contracts and indents.
Under the OFB there were 41 factories and 9 ancillary bodies which were producing small arms, artillery guns, anti-aircraft guns, rockets, bombs, leather equipment for the soldiers, tanks, armoured personnel carriers, and mine protected vehicles.
The decision to dissolve the OFB has been taken based on the recommendations made by various high level committees over two decades. The committees in their recommendations had underlined improvement of the functioning of the OFB and made the factories under it to be self-reliant and competitive as they played a critical role in the nation’s defence preparedness.
The overall performance of the OFB and its factories has always been questioned as well as the quality of the products it has produced.
What happens now?
There are around 70,000 employed in these factories who have now been sent to the seven new entities. And the government has already announced that there will be no change in the service condition of the employees.
As per the government order, all the employees (Group A, B and C) who are from different production units hereafter are transferred to the new companies and they are on deemed deputation which is initially for two years. They will remain government employees.
This effort of creation of new DPSUs is part of the government’s reforms in the Defence sector to make the country less dependent on imports of various products.
https://www.financialexpress.com/defence/pm-modi-dedicates-seven-new-defence-psus-to-the-nation/2350292/
