New Delhi: Defence Minister Rajnath Singh on Friday reviewed the working of the seven state-run defence companies which were carved out of the erstwhile Ordnance Factory Board (OFB).
For 2022-23 fiscal, the seven new defence public sector undertakings (DPSUs) have projected cumulative sales target of around Rs 17,000 crore, which is significantly higher compared to previous achievements of erstwhile OFB, according to the defence ministry.
The companies commenced operations from October 1 last year before they were dedicated to the nation by Prime Minister Narendra Modi on the occasion of 'Vijayadashami' on October 15.
Addressing the officers and employees of the seven companies virtually, Singh stated the corporatisation of OFB was a major reform in the direction of making the country self-reliant in the defence sector.
"The erstwhile OFB, with its infrastructure and skilled manpower, was a strategic asset of the country, which made valuable contributions to national security," he said.
However, Singh said there were concerns in the armed forces regarding high costs, inconsistent quality and delay in supply of products by the OFB in the last few decades.
"Being a government department, the OFB had little accountability to show profits. There were age-old procedures, practices, paper works and rules & regulations, which had lost relevance," he said.
"Getting rid of these practices was the need of the hour and corporatisation was the best way forward. The government has been hand-holding these companies since the beginning," Singh said.