The government has now decided to convert Ordnance Factory Board from a Government Department into seven 100 per cent government-owned corporate entities.
The Prime Minister’s Office on Thursday had informed that Prime Minister Narendra Modi will dedicate seven new defence companies to the nation today, October 15. The Government has decided to convert Ordnance Factory Board from a Government Department into seven 100 per cent government-owned corporate entities in order to improve efficiency in the defence sector. Earlier, Union Defence Minister Rajnath Singh had asked private sector defence companies to invest in Research and Development, significantly to technologies concerned with defence-related utilities and cyberspace.
PM Modi will now dedicate seven new defence companies to the nation. Marking the auspicious occasion of Vijayadashami today, PM will address an event organised by the Defence Ministry through video conferencing. The event will also host Rajnath Singh and representatives from the Defence industry associations. According to a release by the Prime Minister’s Office, the Government will introduce seven 100 per cent government-owned defence companies in India.
“The government has decided to convert Ordnance Factory Board from a Government Department into seven 100 per cent government-owned corporate entities, as a measure to improve self-reliance in the defence preparedness of the country. This move will bring about enhanced functional autonomy, efficiency and will unleash new growth potential and innovation,” the PMO’s office said in a statement.
The seven new Defence companies that have been incorporated 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).
Defence Minister urges Indian defence industry to boost production
Earlier in September, Defence Minister Rajnath Singh laid focus on the manufacturing of defence-related utilities and said that rapid changes in the global security scenario were expected to boost the demand for military equipment and the Indian industry must focus on boosting production. The defence minister stated that the Indian Defence industry should take advantage of the policy reforms launched by the government during the last few years to boost domestic defence manufacturing. Singh had urged private sector enterprises to invest in Research and Development with special attention on cyberspace.
The Centre, in May 2020, had announced increasing the FDI limit from 49% to 74% under the automatic route in the defence sector. The government has been emphasising boosting indigenous defence manufacturing. The Ministry has set a goal of a turnover of USD 25 billion (Rs 1.75 lakh crore) in defence manufacturing by 2025 that included an export target of USD 5 billion (Rs 35,000 crore) worth of military hardware.