Current Affairs PDF

PM Narendra Modi Launched 7 DPSUs Carved out of OFB; E. R. Sheikh Became 1st Director-General of the Ordnance Directorate

AffairsCloud YouTube Channel - Click Here

AffairsCloud APP Click Here

Seven new defence companies, carved out of OFBOn October 15, 2021, Prime Minister Narendra Modi launched the 7 new Defence Public Sector Undertakings (DPSUs) that were carved out of the Ordnance Factory Board (OFB) and dedicated them to the nation.

Key Facts about 7 DPSUs:

i.The 7 DPSUs include – Munitions India Ltd (MIL), Armoured Vehicles Nigam Ltd (AVANI), Gliders India Limited (GIL), Advanced Weapons and Equipment India Ltd (AWE India), Troop Comforts Ltd (TCL), Yantra India Ltd (YIL), and India Optel Ltd (IOL).

ii.The 7 DPSUs started business on October 1, 2021, with an objective to transform OFB’s into productive, and profitable assets, and improve expertise in the product range.

S.no Name of the DPSU Details
 

1

 

AWE India 

It is based in Kanpur, Uttar Pradesh (UP); involved in the manufacturing of small arms and weapons for the armed forces and police. It has got defence orders worth Rs 4066 crore.
 

2

 

AVANI

It is located in Chennai, Tamil Nadu and has been given a contract for defence goods worth Rs 30,025 crore, the highest among all the 7 new DPSUs.
3 GIL  It is also based in Kanpur, UP; involved in the manufacture of textiles.
4 IOL  It is Headquartered in Dehradun, Uttarakhand; involved in manufacturing of electrical machinery and apparatus.
5 MIL  It is based in Pune, Maharashtra, and works to manufacture general-purpose machinery.
 

6

 

TCL

 It manufactures wearing apparel (clothing) (except those made of fur). It is also based in Kanpur, UP.
 

7

 

YIL

 It is based in Nagpur, Maharashtra, and manufactures components such as shells of ammunition. It has inherited OFB assets worth Rs 11,000 crores.

Note – The MoD has set a target of achieving a turnover of Rs 1.75 lakh crore in aerospace, defence goods and services by 2024, including exports of Rs 35,000 crore.

Background: 

i.In June 2021, the Union Cabinet approved the restructuring of the 246-year old OFB (which has 41 Ordnance factories) into 7 wholly government-owned corporate entities on the lines of DPSUs. Click here to know more

  • OFB produced Rs 11,500 crore of defence stores annually and per capita production of Rs 15 lakh a year.

ii.In September 2021, the Ministry of Defence (MoD) had dissolved the OFB and transferred the OFB’s employees, management, and assets to the 7 DPSUs.

-E. R. Sheikh Assumed Charge as 1st Director-General of the Ordnance Directorate

The 1984 batch Indian Ordnance Factory Service (IOFS) officer, E.R. Sheikh assumed charge as 1st Director-Generalof the Ordnance Directorate (Co-ordination and Services), which is the successor organization of OFB.

About E.R. Sheikh:

i.He has served as the General Manager of the Ordnance Factory, Itarsi, MadhyaPradesh, and member of various Defence Delegations to foreign countries (as a representative of the OFB and MoD).

  • He led the successful indigenous development of the Bi-Modular Charge System (BMCS) for artillery ammunition.
  • As a Deputy Director General (DDG)-Propellants and Explosives, he oversaw several plant modernisation projects in explosive factories.
  • He has contributed to the establishment of the ‘modern production line system’ for the manufacture of small arms ammunition at the Ordnance Factory Varangaon, Maharashtra.

ii.He received the AyudhRatna Award, 2020, which was conferred in recognition of his exemplary services to the organisation.

About Ministry of Defence (MoD):

Union Minister – Raj Nath Singh (Constituency – Lucknow, Uttar Pradesh)
Minister of State – Ajay Bhatt (Nainital-Udhamsingh Nagar, Uttarakhand)