PM Modi unveils 7 new defence firms replacing 200-year-old Ordnance Factory Board
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New Delhi: After dedicating seven new state-run defence firms replacing the Ordnance Factory Board, the prime minister on Friday said that a single-window system has been put in place instead of stagnant policies to develop India as a major producer of defence equipment.
In his video address at the event to dedicate new defence companies to the nation, Modi, referring to the self-reliant India campaign, said the goal is to make the country the world's biggest military power on its own.
The prime minister said that 41 Ordinance factories are being converted into seven corporate entities, as a measure to improve our self-reliance and defence preparedness. Defence Minister Rajnath Singh and representatives from the defence industry associations were present on the occasion.
Noting that the decision on reform of the OFB was pending for the last 15-20 years, Modi added that works stuck for decades are being completed and India is taking new resolutions to build a new future.
The prime minister hoped that the new companies would play an important role in import substitution. An order book of more than Rs 65,000 crore reflects the increasing confidence of the country in these companies, he added.
The government had decided to replace the over 200-year-old Ordnance Factory Board into seven fully entities to improve self-reliance in the country's defence preparedness.
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).
The assets of the OFB including its 41 ordnance factories were transferred to the seven new firms.
Meanwhile, Defence Minister Rajnath Singh clarified that there will be no change in service conditions of nearly 70,000 employees of the erstwhile organisation and the decision to corporatise the OFB is driven by efforts to boost India's defence manufacturing sector
