New Delhi, Prime Minister Narendra Modi will dedicate the seven new defence firms shaped out of the Ordnance Factory Board to the nation on Friday.

The federal government has determined to transform the Ordnance Manufacturing facility Board from a authorities division into seven 100 per cent government-owned company entities as a measure to enhance self-reliance in defence preparedness of the nation.

The transfer is aimed to convey enhanced purposeful autonomy, effectivity and to unleash new progress potential and innovation.

The seven new defence firms are: Munitions India Restricted (MIL); Armoured Vehicles Nigam Limited (AVANI); Superior Weapons and Tools India Restricted (AWE India); Troop Comforts Restricted (TCL); Yantra India Restricted (YIL); India Optel Restricted (IOL); and Gliders India Restricted (GIL).

In 2019, the federal government had determined to corporatise the Ordnance Manufacturing facility Board (OFB). Consequent to the choice of the federal government to transform the OFB, the federal government had constituted an Empowered Group of Ministers (EGoM) beneath the chairmanship of Defence Minister Rajnath Singh to supervise and information your entire course of, together with transition help and redeployment plan of staff whereas safeguarding their wages and retirement advantages.

Earlier, the OFB managed 41 factories, using over 70,000 folks. It had an annual turnover of about Rs 19,000 crore. All of that is now distributed into seven defence public sector models (DPSUs).

The workers belonging to Teams A, B and C of the dissolved OFB from each manufacturing and non-production models have been transferred to the brand new DPSUs.

4 committees have been arrange since 2000 to recommend reforms within the defence sector, and besides the one shaped by former Defence Minister Manohar Parrikar, the opposite three — TKS Nair Committee (2000), Vijay Kelkar Committee (2005), and Vice Admiral Raman Puri Committee (2015) — had favoured corporatisation of OFB.

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