Restructuring of OFB into 7 Defence PSUs

June 18, 2021

Government has approved its decision to dissolve Ordnance Factory Board (OFB) and replaced it by seven new Defence Public Sector Undertakings (PSUs). which will oversee 41 ordnance factories in India. These seven entities will be 100 per cent owned by government.

Purpose of restructuring

This decision was taken from the perspective of becoming Atmanirbhar in terms of national security.
It will improve accountability an efficiency of OFB.
Restructuring of OFB will be done with the aim of transforming ordnance factories into productive and profitable assets.
It will deepen their specialization in product range, enhance competitiveness and improve quality and cost-efficiency.
Seven entities will be responsible for different verticals of products that are being produced by 41 ordnance factories.
Ammunition and Explosives group will be engaged in production of ammunition.
Vehicles group will engage in production of defence mobility and combat vehicles.

Ordnance Factory Board (OFB)

OFB, consisting of Indian Ordnance Factories, is a Government agency working under department of defence production (DDP) of Ministry of Defence (MoD). It is engaged in research, development, testing, production, marketing and logistics of the product range across air, land and sea systems. It comprises of 41 ordnance factories, 9 training institutes, 3 regional marketing centres and 4 regional controllerates of safety. Now, OFB will be replaced by 7 new Defence PSU.

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