Lok Sabha Question No. 51 (STARRED), answered on 2016-11-18
Subject: Ordnance Factory Board
Ministry: DEFENCE
Asked by: ARVIND GANPAT SAWANT

## GOVERNMENT OF INDIA MINISTRY OF DEFENCE

## DEPARTMENT OF DEFENCE PRODUCTION

## LOK  SABHA STARRED QUESTION NO.51

TO BE ANSWERED ON THE 18 TH  NOVEMBER, 2016

## ORDNANCE  FACTORY  BOARD

## *51. SHRI  ARVIND SAWANT:

Will the Minister of DEFENCE j{kk ea=h be pleased to state:

- (a) whether the Government has made any assessment of the contribution made by the Ordnance Factory Board (OFB) in meeting the requirements of the defence sector, and if so, the details thereof;
- (b) the supply target vis-a-vis achievement of OFB during the last three years;
- (c) whether OFB has achieved the production targets during the above period;
- (d) if so, the details thereof and if not, the reasons therefor; and
- (e) the corrective measures taken by OFB in this regard?

## A    N    S    W    E    R

MINISTER OF DEFENCE                                   (SHRI MANOHAR PARRIKAR)

j{kk ea=h

¼Jh euksgj ijhZdj½

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(a) to (e): A Statement is laid on the Table of the House.

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## STATEMENT REFERRED TO IN REPLY TO PARTS OF (a) TO (e) OF LOK SABHA STARRED QUESTION NO. 51 FOR ANSWER ON 18.11.2016

- (a) Yes,  Madam.   Ministry  holds  regular  production  review  meetings  in respect  of  Ordnance  Factory  Board  (OFB),  which  supplies  various  items like Ammunitions, Armament, Logistic Vehicles, Armoured Vehicles, Troop Comfort Items, etc. to the Services based on the demands placed by them.
- (b) & (c): Overall Production Targets along with achievements during last three years are as below:

| Year                       |   2013-14 |   2014-15 |   2015-16 |
|----------------------------|-----------|-----------|-----------|
| Target (RE) (Rs. in Crore) |   11860   |   11900   |   13515   |
| Achievement (Rs. in Crore) |   11123   |   11364   |   13047   |
| Achievement (in %age)      |      93.8 |      95.5 |      96.5 |

As against  the mutually agreed targets, OFB  has  made  supplies to Defence Services during the last three years as below:

| Year                       |   2013-14 |   2014-15 |   2015-16 |
|----------------------------|-----------|-----------|-----------|
| Target (RE) (Rs. in Crore) |  10010    |   10393   |   11710   |
| Achievement (Rs. in Crore) |   9295    |    9824   |   11442   |
| Achievement (in %age)      |     92.86 |      94.5 |      97.7 |

From the above, it is seen that OFB has improved its performance in terms of percentage of the  target met during last three years.

- (d) The  major  reasons  for  slippage  in  meeting  the  targets  are  supply constraints in respect of certain imported / indigenous input materials and delay in placement of Indents on OFB.
- (e) A  number  of  corrective  measures  have  been  taken  by  Ministry  of Defence  and  OFB  to  minimize  the  slippages  in  meeting  the  supplies targets:
- (i) Authorization  given  to  OFB  to  procure  input  materials  and undertake production for 50%  of the  quantity against Letter of Intent (LOI).

:  2  :

- (ii) Enhanced delegation of financial powers to OFB for minimizing procurement delays in respect of input materials. (iii) Permission  to  OFB  to  create  advance  stock  of  difficult  to procure raw materials. (iv) Modernization of the production facilities and in-house R&D to improve quality and productivity. (v) Efforts  to  hive-off  non-core  activities  so  as  to  concentrate  on core activities like  manufacture of ammunitions,  weapons, armoured vehicles etc. (vi) Regular  meetings being  held  with  Army and  Ministry  of  Home Affairs to assess their demands for future supplies.
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