Seven new defence companies, carved out of OFB, dedicated to the Nation
Recently, seven new defence companies have been created from the Ordnance Factory Board (OFB).
The Department of Defence Production has formed 7 Defence Public Sector Units (DPSUs) with the goal of improving autonomy, accountability and efficiency in India’s armament supply.
Also, these DPSUs will help in reducing defense related imports and improve the country’s defense preparedness self-reliance.
In the year 2020, India was the third highest military spender in the world after the United States and China.
Steps taken to strengthen Defence Manufacturing
- Indigenous material requirements have been increased in all categories of defense procurement under the Defense Acquisition Procedure (DAP) 2020.
- 209 Defense items have been included in the ‘Positive Indigenization List’ (Items prohibited for import).
- Foreign direct investment (FDI) in the defense sector has been increased to 74 per cent through the automatic route.
- OFB was incorporated to improve efficiency, make products cost-competitive and improve their quality.
- The Innovations for Defense Excellence (iDEX) initiative has been launched to promote innovation and technology development.
- SRIJAN (SRIJAN) portal has been created to provide development support to Micro, Small and Medium Enterprises (MSMEs)/ Startups/ Industry.
- Defense Industrial Corridors are being set up in Uttar Pradesh and Tamil Nadu.
Source – The Hindu
