The Union Government has formally approved its decision to dissolve Ordnance Factory Board and replaced it by 7 new Defence Public Sector Undertakings. which will oversee 41 ordnance factories in India. These 7 entities will be 100% owned by Union Government.

Purpose of restructuring of OFBs

  • This GoI’s decision was taken from the perspective of becoming Atmanirbhar in terms of national security.
  • It will improve accountability an efficiency of Ordnance Factory Board.
  • The Restructuring will be done with the aim of transforming ordnance factories into productive and profitable assets.
  • It will deepen their specialization in product range, enhance competitiveness and improve quality and cost-efficiency.
  • These 7 entities will be responsible for different verticals of products that are being produced by 41 ordnance factories.
  • The Ammunition and Explosives group will be engaged in production of ammunition.
  • Vehicles group will engage in production of defence mobility and combat vehicles.

Ordnance Factory Board

The Ordnance Factory Board consisting of Indian Ordnance Factories, is a Union Government agency working under department of defence production of Ministry of Defence. It is engaged in research, development, testing, production, marketing and logistics of the product range across air, land and sea systems. It comprises of 41 ordnance factories, 9 training institutes, 3 regional marketing centres and 4 regional controllerates of safety. Now, Ordnance Factory Board will be replaced by 7 new Defence Public Sector Undertakings.

Restructuring of Ordnance Factory Board into 7 Defence PSUs Restructuring of Ordnance Factory Board into 7 Defence PSUs