Seven new defence companies, carved out of OFB, dedicated to the nation
Union Minister for Defence Rajnath Singh at the dedication ceremony of seven new defence companies to the nation, in New Delhi on October 15, 2021.
New Delhi: Seven new defence companies, carved out of Ordnance Factory Board (OFB), were dedicated to the Nation at a function organised by Ministry of Defence on the occasion of ‘Vijayadashami’ in New Delhi today.
The seven new Defence companies are: Munitions India Limited (MIL); Armoured Vehicles Nigam Limited (AVANI); Advanced Weapons and Equipment India Limited (AWE India); Troop Comforts Limited (TCL) (Troop Comfort Items); Yantra India Limited (YIL); India Optel Limited (IOL) and Gliders India Limited (GIL). These companies have commenced business from October 01, 2021.
In his video address, Prime Minister Narendra Modi said that restructuring of ordnance factories and creation of seven new companies are a part of the various resolutions which the nation is pursuing to build a new future for the country.
The Prime Minister said that the decision of creating these companies was stuck for a long time and expressed the belief these 7 new companies would form a strong base for the military strength of the country in the times to come. Noting the glorious past of Indian ordnance factories, the Prime Minister commented that upgradation of these companies was ignored in the post-independence period, leading to the country’s dependence on foreign suppliers for its needs. “These 7 defence companies will play a major role in changing this situation”, he said.
Modi also mentioned that these new companies would play an important role in import substitution, in line with the vision of ‘Atmanirbhar Bharat’. An order book of more than Rs 65,000 crore reflect the increasing confidence of the country in these companies, he added.
It may be mentioned that to enhance functional autonomy, efficiency and unleash new growth potential and innovation, Government had decided to convert OFB 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.
Modi appealed to the new companies that Research and innovation should be a part of their work culture, so that they just don’t catch up but take lead in future technologies. This restructuring would provide more autonomy to the new companies to nurture innovation and expertise and the new companies should encourage such talent, he added. He urged the start-ups to become a part of this new journey through these companies to leverage the research and expertise of each other.
The Prime Minister mentioned that the Government has given these new companies not only a better production environment but also complete functional autonomy. He reiterated that the Government has also ensured that the interests of the employees are fully protected.
Describing the decision to convert OFB into seven defence companies as historic, Defence Minister Rajnath Singh, in his address, said the decision will provide autonomy to these companies and improve accountability and efficiency in the functioning of 41 factories under them. He exuded confidence that the new structure will help in overcoming various shortcomings in the existing system of OFB and provide these companies incentive to become competitive and exploring new opportunities in the market including exports, while safeguarding the interests of the employees.
“The objective of this restructuring is to transform Ordnance Factories into productive, and profitable assets; improve expertise in product range; increase competitiveness; improve quality; enhance cost-efficiency and ensure self-reliance in defence preparedness,” he said.
Reiterating the Government’s commitment towards protecting the interests of OFB employees, Rajnath Singh stated that all employees of OFB (Group A, B & C) belonging to production units will be transferred to corporate entities on deemed deputation for a period of two years without any change in their service conditions as Central Government employees.
The Minister of State for Defence, Ajay Bhatt, mentioned that the transformation of OFB could become a reality despite involving more than 75,000 employees, 41 production units and a number of non-production units spread over 10 States/UT in the country, having assets worth more than Rs. 79,000 crore and above all, legacy of more than 220 years.
– global bihari bureau