Prime Minister Narendra Modi on Thursday launched seven government-run corporate entities that have replaced the over 200-year-old Ordnance Factory Board (Pic. Courtesy PIB)
In a landmark reform aimed at making the country a major producer of military hardware, Prime Minister Narendra Modi on Thursday launched seven government-run corporate entities that have replaced the over 200-year-old Ordnance Factory Board.
"The goal is to make India the world's biggest military power on its own," PM Modi said at the launch.
The Prime Minister highlighted that 41 Ordnance factories across India, which were being run by an archaic Ordnance Factory Board, are now being converted into seven corporate entities. This corporatisation of defence firms will enhance autonomy and efficiency to unleash a new growth potential and innovation to improve our self-reliance and defence preparedness.
The Prime Minister said a single-window system has been put in place instead of stagnant policies to develop India as a major producer of defence equipment.
"Under the self-reliant India campaign, the country's goal is to make India the world's biggest military power on its own and develop a modern military industry in India," PM Modi said.
The seven new government-owned defence companies carved out of the Ordnance Factory Board (OFB) have already been given orders worth Rs 65,000 crore.
All the pending orders with OFB have been converted into deemed contracts to ensure sufficient workload with new entities dedicated to the nation on the occasion of Vijayadashami in New Delhi on October 15.
These companies will be involved in production of defence equipment and material including gun systems, armoured vehicles and ammunition among other things.
"For the first time since Independence, many major reforms have been rolled out in India's defence sector and it has more transparency and trust than ever before," PM Modi pointed out during the launch.
"In the last seven years, the country has worked to carry forward this resolve with the mantra of 'Make in India'," he added.
After Independence, there was a need to upgrade ordnance factories, adopt new-age technologies, but it didn't get much attention, PM Modi said.
India is taking new resolutions to build a new future, he added.
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).
In his video address at the event, PM Modi said that as India enters 75 years of Independence, projects are being completed that were stuck for a long time.
"Today, there is more transparency, trust, and a technology driven approach in the defence sector of the country than ever before. For the first time after Independence, so many major reforms are happening in our defence sector,” he added.
Defence Minister Rajnath Singh and representatives from the defence industry associations were also present on the occasion.