Dissolution of the Ordnance Factory Board (OFB)

  • IASbaba
  • September 29, 2021
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Dissolution of the Ordnance Factory Board (OFB)

Part of: Prelims and GS-III – Defence and security

Context The Defence Ministry has issued an order for the dissolution of the Ordnance Factory Board (OFB) with effect from October 1 2021 upon which its assets, employees and management would be transferred to seven newly constituted defence public sector undertakings (DPSUs).

Key takeaways 

  • Once implemented, the OFB will cease to exist.
  • There will be no change in service conditions  of the employees.
  • On June 16, the Union Cabinet had approved a long-awaited reform plan to corporatise the OFB, which has 41 factories, into seven fully government-owned corporate entities on the lines of DPSUs.
  • Benefits 
    • 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

About Ordnance Factory Board

  • Ordnance Factory Board (OFB), consisted of the Indian Ordnance Factories.
  • It was an organisation, under the control of department of defence production (DDP), Ministry of Defence (MoD), Government of India. 
  • It was engaged in research, development, production, testing, marketing and logistics of a product range in the areas of air, land and sea systems.
  • OFB was the world’s largest government-operated production organisation, and the oldest organisation in India.

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