Cabinet Approval for OFB corporatisation

• Integrity Education, Delhi
• 17, Jun 2021

• Corporatization of the Ordnance Factory Board into 7 100% Government owned corporate entities, registered under the Companies Act 2013
• The restructuring will transform the ordnance factories into productive and profitable assets, deepen product specialisation, boost performance and improve quality, cost efficiency and accountability
• Ordnance factories currently manufacture tanks, armoured personnel carriers, mine protected vehicles, bombs, rockets, artillery guns, anti-aircraft guns, parachutes, small arms, clothing and leather equipment for soldiers.

Issues with Current OFB

• Quality of products manufactured by the OFB is substandard
• The Comptroller and Auditor General had repeatedly raised questions about the quality of products supplied by the OFB and its overall performance.

About OFB

• OFB consisting of 41 Indian Ordnance Factories is a Government agency under the control of department of Defence Production, Ministry of Defence
• OFB is the world's largest government-operated production organisation ● It is the oldest organisation in India, established in 1775 as the Board of Ordnance at Fort William, Kolkata.