The government has approved a long-pending proposal to restructure the Ordnance Factory Board (OFB) that operates 41 ammunition and defence equipment production facilities into seven separate corporate entities to improve its accountability, efficiency and competitiveness.
The chamber said that with OFB becoming seven corporate entities, they would enjoy administrative and financial autonomy with professional management, thereby promoting faster decision making in all matters of defence procurement from industry and small and medium enterprises (SMEs).
This will certainly bring a lot of ease in doing of business for industry and SMEs, it said adding that micro, small and medium enterprises (MSMEs) can now expect to enlarge their business of defence supplies.
PHDCCI said that with OFB turning corporate entities, they willl be free to form strategic alliances with Indian and overseas companies to boost innovation and develop new products.
“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,” it added.
Further, it said that with an increase in export of defence equipment being one of the objectives of corporatisation of OFB, the Indian industry will also benefit by securing larger amount of orders for supply of components and
, as the corporates would be able to have greater penetration into the export market.