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
