As part of the corporatisation of the Ordnance Factories, the Central government will formally launch seven new companies on October 15, informed the Ministry of Defence on Monday. The government is converting Ordnance Factory Board (OFB) into corporate entities. The assets of the now-defunct Ordnance Boards will be transferred and distributed to these new entities. These seven new defence companies will have 66 firm contracts worth Rs 65,000 crore from the three services and paramilitary forces.
The new companies are – Advanced Weapons and Equipment India Limited, Troop Comforts Ltd, Avani Armoured Vehicles, Munitions India Limited, India Optel Limited, Gliders India Limited, Yantra India Limited.
The central government dissolved the Ordnance Factory Board in September this year as part of reforms in the defence sector. The move is aimed at the long-awaited privatization of the sector. The Ordnance Factories have faced severe criticism for inefficiency and for the poor quality of weapon manufacturing.