UPSC Articles
OFB corporatisation gets Cabinet approval
Part of: GS Prelims and GS -III – Defence and security
In news
- The Union Cabinet approved a plan to corporatise the Ordnance Factory Board (OFB).
- OFB has 41 factories which will be divided into seven fully government owned corporate entities on the lines of Defence Public Sector Undertakings (DPSU).
- Once implemented, the OFB will cease to exist.
- There will be no change in service conditions of the employees
Benefits of the approval
- Make the country self-sufficient in defence manufacturing
- Transform the ordnance factories into productive and profitable assets,
- Deepened specialisation in the product range
- Enhanced competitiveness
- Improved quality
- Help in overcoming various existing shortcomings like eliminating inefficient supply chains
