MoD set to open OFB for local, foreign firms

Tribune News Service
New Delhi, August 21

The Ministry of Defence intends to allow foreign and Indian Industry to tie up with Ordnance factories to produce military equipment.

The proposed transformation is to turn the Ordnance Factory Board (OFB) into a public sector corporate entity and help increase export market, self-reliance and add latest technology and innovation. 

The OFB is a subordinate or attached office of the Department of Defence Production. It has 41 Ordnance factories, nine training institutes, three regional marketing centres, and four Regional Controllers of Safety working under it. 

The principal products of OFB include tanks and armoured vehicles, artillery guns, small arms and weapons. 

Corporatised Ordnance factories may not require finances from the government to fund modernisation and R&D. Ordnance factohave been facing the performance issues for a long time, officials said. The high cost of OFB products is due to high overhead charges and there’s minimal innovation and technology development.

The subject of restructuring of OFB has been examined by various committees. One of them even suggested that the OFB needs to have integrated responsibility for all functions and requires new mode of thinking and decision-making. This corporation will not mean privatisation but will bring about functional autonomy and make them accountable.