OFB corporatisation gets Cabinet approval

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