Seven new defence companies were dedicated to the nation on ‘Vijayadashami’ at a function organised by the Defence Ministry. These seven companies, carved out of the Ordnance Factory Board (OFB), are — Munitions India Limited (MIL), Armoured Vehicles Nigam Limited (AVNL), Troop Comforts Limited (TCL), Gliders India Limited (GIL), Armoured Vehicles Nigam Limited (AVANI), Advanced Weapons and Equipment India Limited (AWE India), India Optel Limited (IOL) and Yantra India Limited (YIL).
They started business operations from October 1. The government decided to convert the 200-year-old OFB from a government department to seven 100 per cent government-owned corporate entities to enhance functional autonomy, efficiency and unlock new growth potential and innovation.
The move is also aimed at improving India’s self-reliance in defence preparedness, the Defence Ministry said.
“The objective of this restructuring is to transform Ordnance Factories into productive, and profitable assets; improve expertise in product range; increase competitiveness; improve quality; enhance cost-efficiency and ensure self-reliance in defence preparedness,” Defence Minister Rajnath Singh said.
He added that all OFB employees (Group A,B, and C) belonging to production units will be transferred to corporate entities on deemed deputation for two years without any change in their service conditions as government employees.
Prime Minister Narendra Modi also said in the last seven years, the country has worked to carry forward this resolve with the mantra of ‘Make in India’. He also said that as India enters 75 years of Independence; projects are being completed that were stuck for a long time.
Modi said these companies will play an important role in realising the government’s Aatmanirbhar Bharat vision. He said an order book of over Rs 65,000 crore reflects the country’s increasing confidence in these companies. “Our defence export has increased 325 per cent in last five years,” he added.
To make Atmanirbhar Bharat a reality, the Prime Minister said the target of our companies is to not only establish expertise in their products but also to become a global brand. He urged that while competitive cost is our strength, quality and reliability should be our identity.
He also appealed to the new companies to make research and innovation a part of their work culture so they take lead in future technologies. He urged the startup community to be a part of this journey through these companies to leverage the research and expertise of each other.
Edited by Mehak Agarwal
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