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The restructuring of the Ordnance Factory Board will turn India into a defence powerhouse

Abhinav Singh by Abhinav Singh
24 June 2021
in Opinions
Ordnance Factory Board, Indian Defence, Defence Manufacturing, Domestic Defence Industry,

[PC:TUFTS]

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The central government is finally moving ahead with its plans to revamp the Ordnance Factory Board (OFB) that has been India’s crown jewel in showcasing a government work culture that breeds a lack of ingenuity, innovation and creativity, all the while rewarding incompetence and promoting lack of accountability.

Reportedly, the government’s decision to restructure the nearly 200-year-old pre-historic company is expected to bring advantage to private sector companies as well as MSMEs engaged in defence-related manufacturing and supplies, according to industry chamber PHDCCI.

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A white elephant of the Nehruvian economy, OFB employs more than 80,000 people in 41 ordnance factories, 13 ordnance R&D centres, and nine ordnance institutes of learning. In its revamp plans, the government has given the nod to turn 41 ammunition and defence equipment production facilities of OFB into seven separate corporate entities to improve accountability, efficiency and competitiveness.

Ordnance Factory Board, Indian Defence, Defence Manufacturing, Domestic Defence Industry,
[PC:ET Government]
“The corporatised ordnance factories can form strategic alliances with Indian and overseas companies to develop new products and carve out a niche in the international armament industry,” the chamber said.

The changes were necessary and long overdue and it will help the government in achieving its goals of becoming a major ‘defence equipment exporter’ as the corporates would be able to have greater penetration into the export market.

A sorry history of OFB

Reported by TFI, the Indian Army in its internal assessment had found that poor quality defence equipment supplied by OFB had led to 27 deaths and loss of 960 crore rupees to the government since 2014. OFB – the government-owned production unit, has long been infamous for its inefficiency and ‘Communist’ work culture. Its inefficient equipment has led to the loss of soldiers as well as money to the Indian armed forces.

In May 2019, The Tribune reported, “The Army has sought immediate intervention of the Defence Ministry to check rising cases of accidents involving battle tanks, artillery and air defence guns due to ‘poor quality’ of ammunition being supplied by the OFB.”

Read More: As Private companies get contracts for grenades and guns, Ordnance Factory Board stands completely sidelined

India’s defence manufacturing is still in the nascent stage, thanks to the monopoly of the public sector. The post-independence government restricted entry of private players in the strategic sector like defence equipment manufacturing, and the meagre resources were put to white elephant companies like HAL and OFB.

The public sector companies like HAL and Ordnance factory Board could not get any breakthrough in seven decades of its existence, and the country continued to import defence equipment from private manufacturers in countries like the United States, France, and the United Kingdom.

The allies of India like Sri Lanka, Bangladesh, Maldives, and Myanmar are forced to purchase defence equipment from enemy countries like China due to the inefficiency of India’s state-owned producers.

Read More: Ordnance Factory Board vs the Indian Army – The former doesn’t even have a case

These countries are defence allies of India, but, they purchase defence equipment from China because Indian companies are not able to meet their demand, and how would they? These companies cannot meet the demand of Indian armed forces and if our domestic forces are not willing to use equipment manufactured by OFB and HAL, why would any foreign country go for them.

The government has laid down the roadmap of the revival of OFB and just the way it was able to metamorphose DRDO into an asset from a liability, one can be hopeful that the same can be emulated for the company, pivotal to India’s defence plans.

Tags: Defence ManufacturingDomestic Defence IndustryIndian DefenceOrdnance Factory Board
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Comments 5

  1. VJ says:
    4 years ago

    This restructuring of the OFB and transforming it into world class factory with best tech should have happened at least 25 years back but all previous governments have failed badly and at least this is happening now. I am surprised what took took these many years to recognize OFB importance.

    Reply
  2. P says:
    4 years ago

    lol.. these “mungerilaal” statements make me fall off the chair… India is a corrupt nation and corruption is in their DNA… the only “powerhouse” India can become is a fhuddu corruption powerhouse.
    before slagging me off, have a hand on your heart and you will agree what i have said is 100% fact! sad reality…

    Reply
    • VJ says:
      4 years ago

      You must be living under rock without exposure to the real world. On the world map show me a country that doesn’t have corruption? corruption is in humans DNA not just particular to any region.

    • Sri says:
      4 years ago

      Don’t generalize yourself to the entire population.

    • Avtar Singh says:
      4 years ago

      Anglo countries are the most corrupt countries on the planet….
      but they are gora, suited, booted and talk in cut glass english accent
      There is nothing original going on in India, except that the Indian population is far poorer and
      suffers more than anglo citizens… but they are starting to feel it

      all usa congress wallas can buy and sell shares ahead of their speeches and laws,
      it is called insider trading.
      take a look at the speech income of the current treasury secretary/former fed head

      given its history India is doing the best it can

      but of course you could never convince a self loather…
      to them all bad things only happen in India with no chance of recovery

      but overall I agree with you and we know the people responsible from 1947 on wards.
      poor people like me were still pooping in fields in the 1970s,
      we all know which party is to blame

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