In a major push to Atma Nirbhar Bharat Abhiyan, Prime Minister Narendra Modi announced the creation of seven government-run defence entities to help India become the world's biggest military power on its own, along with the development of modern military industry in India.
Speaking on the occasion, Prime Minister Modi stated that the single-window system has been put in place to help India become a major producer of defence equipment. He further pointed out that the country's defence exports have increased by 325% during the last five years.
The event was attended by Prime Minister Narendra Modi, Defence Minister Rajnath Singh, NSA Ajit Doval, among other prominent personalities.
Key Highlights:
1- The seven state-run defence firms replaced the 200-year-old Ordnance Factory Board.
2- Seven new state-run defence entities were carved out of as many as 41 Ordnance Factory Board (OFB).
3- These defence entities will help in generating employment opportunities for the people of Micro, Small and Medium Enterprises (MSMEs).
4- India has already placed orders worth Rs. 65,000 crores for the new firms.
List of seven defence companies launched by PM Modi
Below is the list of seven defence companies that were launched by Prime Minister Modi. These companies have started their business on 1 October 2021.
1- Munitions India Limited (MIL)
2- Armoured Vehicles Nigam Limited (AVANI)
3- Advanced Weapons and Equipment India Limited (AWE India)
4- Troop Comforts Limited (TCL)
5- Yantra India Limited (YIL)
6- India Optel Limited (IOL)
7- Gliders India Limited (GIL)
Why defence firms were carved out of Ordnance Factory Board (OFB)?
According to the government, the state-owned entities will help the country in enhancing its self-reliance in the defence sector. The move will bring about enhanced functional autonomy, efficiency, and will unleash new growth potential and innovation.
India's Ministry of Defence has set a target of achieving a turnover of Rs 1.75 lakh crore by 2024. For this, the government-run entities will have 66 firm contracts from the Indian Armed Forces. Further, the firms will help India in improving accountability and efficiency in the defence sector.
"The functioning of the Ordnance Factory Board (OFB) was studied by various high-level committees over the past two decades. Its objective was to promote self-reliance to improve the functioning, and defence preparedness of the Armed Forces by these factories. Today our country with its full capability and potential is all set to emerge as the defence manufacturing hub of the world," Defence Minister Rajnath Singh was quoted as saying by ANI.
| Background On June 16, the Cabinet approved a proposal that was pending for a long time to restructure the 200-year-old OFB that operated 41 ammunition and military equipment production facilities into seven state-owned corporate entities to improve its accountability, efficiency and competitiveness. |
As India enters 75 years of Independence, the projects that were stuck for a long time are now being completed. Also, the upgradation of ordnance factories, adoption of new-age technologies are the need of the hour.
Also Read | Explained: Ordnance Factory Board (OFB) ordered to be dissolved by Defence Ministry - Reasons & Benefits
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