246-year-old Ordnance Factory Board scrapped

In a major decision of the Union Cabinet, the Ordnance Factory Board (OFB), first set up by the British in 1775, now under the Ministry of Defence will cease to exist. Seven separate companies are planned to be created, each doing a specific manufacturing role. The existing 41 factories under the OFB will be subsumed under one or the other of the seven new companies, all 100 per cent government owned public sector undertakings (PSU).

The seven new – yet to be named— PSU entities will cover a separate sector. One will be the ‘Ammunition and Explosives group’. This will engage in production of ammunition of various calibre and explosives, not only for the Make in India initiative but also for exports. The ‘Vehicles group’ would engage in production of defence mobility and combat vehicles such as Tanks, Trawls, BMP and Mine Protected Vehicles.

‘Weapons & Equipment group’ would engage in production of small arms, medium and large calibre guns and other weapon systems. The other four companies would be ‘Troop Comfort Items group’, ‘Ancillary group’, ‘Opto-Electronics group’ and ‘Parachute group’.