7 new defence companies, carved out of OFB, dedicated to nation on Vijayadashami
New Delhi/IBNS: 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 on Friday,October 15.
Prime Minister Narendra Modi delivered a video address during the event.
Raksha Mantri Rajnath Singh presided over the ceremony at Kothari Auditorium, DRDO Bhawan.
To enhance functional autonomy, efficiency and unleash new growth potential & 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.
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, Modi noted the auspicious occasion of Vijayadashami today and the tradition of worshiping arms and ammunition on the day.
He said, In India, we see power as a medium of creation. He remarked that with the same spirit, the nation is moving towards strength.
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.
An order book of more than Rs 65,000 crore reflect the increasing confidence of the country in these companies, he added.
Describing the decision to convert OFB into seven defence companies as historic, Raksha Mantri Rajnath Singh, in his address, said the move reflects the Government’s resolve of achieving 'Aatmanirbhar Bharat'.
He said, this decision will provide autonomy to these companies and improve accountability & 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.
He added that Ministry of Defence has set a target of achieving a turnover of Rs 1.75 lakh crore in aerospace and defence goods and services by 2024, including exports of Rs 35,000 crore.
Rajnath Singh urged the new management to not just depend on orders for the Services, but explore new opportunities in India and abroad.
He also wished the Nation on 'Vijayadashami' and remembered former President APJ Abdul Kalam on his birth anniversary.