New Delhi : With an aim to give a major push to export India made arms and ammunitions, the Defence Public Sector Undertakings (DPSUs) have set up separate business development divisions for widening customer base and better coordination of export activities and interaction with prospective organizations and customers.
When India is celebrating Ordnance Factories Day on Monday, ETV Bharat tried to explore the importance of the day and the role played by the DPSUs.
“Separate business development divisions have been created by the new DPSUs for widening their customer base and better coordination of export activities and interaction with prospective organizations and customers. The new DPSUs have shown commendable progress in exports, as compared to erstwhile Ordnance Factory Board (OFB) and orders have been received from new countries for the first time. The new DPSUs have obtained export orders of value more than Rs 4,200 crores, since inception,” government data in possession of ETV Bharat said.
It said that to focus on exports and business development, regular review meetings are being held at the highest level in the Ministry. “Defence attaché posted are being contacted for assistance in boosting exports. DPSUs are participating in international exhibitions to promote their products in foreign countries,” the data revealed.
The DPSUs are assigned to supply arms and ammunition to the Indian Armed Forces and also exports that can give India not only the name but foreign exchange too.
About DPSUs:
The Government of India has decided to corporatise the functions of the 41 production units (Ordnance Factories) of the Ordnance Factory Board (OFB), functioning under the Department of Defence Production. Accordingly, the Government of India has decided to transfer the management, control, operations and maintenance of these 41 production units and identified non-production units to seven Government companies from 2021. The DPSUs are Munitions India Limited (MIL), Armoured Vehicles Nigam Limited (AVNL), Advanced Weapons and Equipment India Limited (AWEIL), Troop Comforts Limited (TCL), Yantra India Limited (YIL), India Optel Limited (IOL), Gliders India Limited (GIL).
Ordnance Factory & Importance of March 18:
The Ordnance Factories form an integrated base for indigenous production of defence hardware and equipment, with the primary objective of self-reliance in equipping the armed forces with state of the art battlefield equipment. Ordnance Factories Day is celebrated on March 18 to commemorate the day when Ordnance Factory in Cossipore, Kolkata was formed. It’s a special day celebrated in India to honour the Indian Ordnance Factories that provide arms and ammunition to the Indian Armed Forces.
Linkage to pre-Independence era:
During British rule, the East India Company realized the growing need for arms and ammunition for the British army. In 1775, the Board of Ordnance was formed in Fort William, Kolkata. Later, in 1787, a gunpowder factory was established in Ishapore, and a gun carriage factory was set up in Cossipore, Kolkata (now known as the Gun and Shell Factory). When India got independence, the Ordnance Factories came under the control of the Indian Government.
Parliamentary Committee report:
A latest report of a Parliamentary Committee on Ministry of Defence while expressing its concern regarding the steep decline in the Order Book position for the newly created DPSUs including AWEIL, TCL and IOL, said that there was ‘NIL’ order book position registered for TCL from 2026-2028 and the same position existed for MIL during the said period. The Committee also found that GIL had ‘Nil’ orders for 2027-28. The Committee Lok Sabha MP Jual Oram reiterated its concern at the steep decline in the Order Book position for the newly created DPSUs. It asked the Defence Ministry to treat this issue with utmost seriousness. The committee noted that the sustenance and profitability of the newly created DPSUs are primarily dependent on a healthy order book position.
The Ministry of Defence, however, in its action taken report has said that it has taken steps to handhold and support these new DPSUs in starting their business as corporate entities. In this regard, financial assistance has been provided in form of Emergency Authorization Fund of Rs 2500 crore each in FY 2021-22 & 2022-23 to these DPSUs to meet the accrued committed liabilities and operational requirement.
Read More
- India Remains World's Largest Defence Importer Despite 'Aatmanirbharta' Pitch: Report
- MoD Inks Contract With AVNL For 693 Armament Upgrades Of Infantry Combat Vehicle
