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7 NEW DEFENCE COMPANIES, CARVED OUT OF OFB

YB WEB DESK. Dated: 10/16/2021 2:24:02 PM

New Delhi, Oct 15 Seven new defence companies, carved out of Ordnance Factory Board (OFB), were dedicated to the Nation at a function organised by Ministry of Defence on the occasion of ‘Vijayadashami’ in New Delhi on October 15, 2021. Prime Minister Narendra Modi delivered a video address during the event. Raksha Mantri Rajnath Singh presided over the ceremony at Kothari Auditorium, DRDO Bhawan. To enhance functional autonomy, efficiency and unleash new growth potential & innovation, Government had decided to convert OFB from a Government Department into seven 100 per cent Government- owned corporate entities as a measure to improve self-reliance in the defence preparedness of the country. The seven new Defence companies are: Munitions India Limited (MIL); Armoured Vehicles Nigam Limited (AVANI); Advanced Weapons and Equipment India Limited (AWE India); Troop Comforts Limited (TCL) (Troop Comfort Items); Yantra India Limited (YIL); India Optel Limited (IOL) and Gliders India Limited (GIL). These companies have commenced business from October 01, 2021. In his video address, Prime Minister Narendra Modi noted the auspicious occasion of Vijayadashami today and the tradition of worshiping arms and ammunition on the day. He said, In India, we see power as a medium of creation. He remarked that with the same spirit, the nation is moving towards strength. Narendra Modi also paid tributes to Dr APJ Abdul Kalam and said that Dr Kalam dedicated his life to the cause of a strong nation and said that Restructuring of Ordnance Factories and creation of seven companies will give strength to his dream of strong India. New Defence companies are a part of the various resolutions which the nation is pursuing to build a new future for the country during this Amrit Kaal of India’s independence, he added. The Prime Minister said that the decision of creating these companies was stuck for a long time and expressed the belief these 7 new companies would form a strong base for the military strength of the country in the times to come. Noting the glorious past of Indian ordnance factories, the Prime Minister commented that upgradation of these companies was ignored in the post-independence period, leading to the country’s dependence on foreign suppliers for its needs. “These 7 defence companies will play a major role in changing this situation”, he said. Narendra Modi also mentioned that these new companies would play an important role in import substitution, in line with the vision of ‘Atmanirbhar Bharat’. An order book of more than Rs 65,000 crore reflect the increasing confidence of the country in these companies, he added. The Prime Minister recalled the various initiatives and reforms undertaken in the recent past that have created Trust, Transparency and Technology driven approach in the defence sector like never before. Today, private and public sector are working hand in hand in the mission of national security, he added. He cited Uttar Pradesh and Tamil Nadu Defence Corridors as examples of the new approach. He noted as new opportunities are emerging for the youth and MSME the country is seeing the result of policy changes in the recent years. “Our defence export has increased by 325 per cent in last five years”, he added. Narendra Modi mentioned that it is our target that our companies not only establish expertise in their products but also become a global brand. He urged that while competitive cost is our strength, quality and reliability should be our identity. He further mentioned that in the 21st century, growth and brand value of any nation or any company is determined by its R&D and innovation. He appealed to the new companies that Research and innovation should be a part of their work culture, so that they just don’t catch up but take lead in future technologies. This restructuring would provide more autonomy to the new companies to nurture innovation and expertise and the new companies should encourage such talent, he added. He urged the start-ups to become a part of this new journey through these companies to leverage the research and expertise of each other. The Prime Minister mentioned that the Government has given these new companies not only a better production environment but also complete functional autonomy. He reiterated that the Government has also ensured that the interests of the employees are fully protected.