Lok Sabha Question No. 3150 (UNSTARRED), answered on 2018-03-14
Subject: Establishment of Ordnance Factories
Ministry: DEFENCE
Asked by: SANKAR PRASAD DATTA, SANJAY SHAMRAO DHOTRE, RAHUL RAMESH SHEWALE, BHARTRUHARI MAHTAB

## GOVERNMENT OF INDIA MINISTRY OF DEFENCE

## DEPARTMENT OF DEFENCE PRODUCTION

## LOK  SABHA

## UNSTARRED QUESTION NO.3150

TO BE ANSWERED ON THE 14 TH  MARCH, 2018

## ESTABLISHMENT OF ORDNANCE FACTORIES

3150.  SHRI SANKAR PRASAD DATTA:

SHRI  SANJAY DHOTRE:

SHRI  RAHUL SHEWALE:

SHRI  BHARTRUHARI MAHTAB:

Will the Minister of DEFENCE

j{kk ea=h

be pleased to state:

- (a) whether the Government has any proposal to establish new ordnance factories in the country and if so, the details thereof;
- (b) whether  the  Government  has  any  proposal  for  modernization  of  Ordnance Factories to encourage indigenous production of defence equipment;
- (c) if  so,  the  details  thereof  along  with  the  time  by  which  the  modernization  of Ordnance Factories is likely to be initiated and completed;
- (d) the details of the annual production and turnover of the Ordnance Factories across the country during each of the last three years and the current year, State-wise;
- (e) whether  the  Government  has  received  complaints  of  supply  of  sub-standard material to Ordnance Factories during the said period;
- (f) if  so,  the  details  thereof,  State-wise  and  the  reasons  therefor  along  with  the corrective steps taken / being taken by the Government in this regard; and
- (g) the other steps taken / being taken by the Government to improve the functioning of the Ordnance Factories in the country?

## A    N    S    W    E    R

MINISTER OF STATE

(DR. SUBHASH BHAMRE)

IN THE MINISTRY OF DEFENCE

र  ा रा य मं ी

(डा. सुभाष भामरे)

## (a) At present, there is no proposal for establishing any new Ordnance Factory in the country.

:  2  :

(b) & (c): Yes,  Madam.    Modernization  of  Ordnance  Factories  is  an  ongoing process with an objective to create, maintain and modernize all the capital  assets,  with  appropriate  contemporary  technology  for  indigenous production of Defence equipment. (d) The  annual  production  and  turnover  of  Ordnance  Factories  across the country during each of the last three years and the current year, Statewise is enclosed as Annexure-I. (e) & (f): Ordnance Factory Board has received complaints of supply of sub-standard material to Ordnance Factories during each of the last three years and the current year as brought out at Annexure-II. (g) Ordnance Factory  Board  has  been  granted  functional  and  financial powers for improving the functioning of Ordnance Factories.

******

## ANNEXURE-I REFERRED IN THE REPLY GIVEN IN PART (d) OF LOK SABHA UNSTARRED QUESTION NO.3150 FOR ANSWER ON 14.03.2018 Annual Production and Turnover of the Ordnance Factories during the last three years and the current year, State -wise

|         |                                        |                    |          |            | 2015-16   |            | 2016-17   |                          |                       |
|---------|----------------------------------------|--------------------|----------|------------|-----------|------------|-----------|--------------------------|-----------------------|
| SL. NO. | YEAR Factory                           | 2014-15 Production | Turnover | Production | Turnover  | Production | Turnover  | 2017-18 (upto Production | 03-03-2018) Turn Over |
|         | Union Teriotory : Chandigarh           |                    |          |            |           |            |           |                          |                       |
| 1       | Ordnance Cable Factory Chandigarh      | 64.13              | 64.13    | 58.58      | 69.61     | 74.31      | 83.23     | 73.38                    | 89.04                 |
|         | STATE : UTTARAKHAND                    |                    |          |            |           |            |           |                          |                       |
| 2       | Ordnance Factory Dehradun              | 130.17             | 130.17   | 152.82     | 177.60    | 243.63     | 274.96    | 212.63                   | 255.53                |
| 3       | Opto Electronics Factory, Dehradun     | 222.89             | 222.89   | 434.97     | 490.40    | 726.77     | 816.87    | 785.52                   | 927.89                |
|         | STATE : UTTAR PRADESH                  |                    |          |            |           |            |           |                          |                       |
| 4       | Ordnance Factory Muradnagar            | 203.35             | 203.35   | 232.73     | 262.88    | 249.12     | 282.17    | 242.63                   | 271.68                |
| 5       | Ordnance Clothing Factory Shahjahanpur | 441.22             | 441.22   | 634.15     | 634.15    | 691.72     | 710.40    | 497.03                   | 542.36                |
| 6       | Ordnance Equipment Factory Hazratpur   | 111.46             | 111.46   | 150.16     | 150.16    | 200.68     | 207.14    | 161.33                   | 170.52                |
| 7       | Ordnance Factory Kanpur                | 561.13             | 561.13   | 643.07     | 713.81    | 718.15     | 801.41    | 370.86                   | 425.54                |
| 8       | Small Arms Factory,Kanpur              | 149.27             | 149.27   | 179.89     | 196.81    | 197.75     | 211.90    | 133.63                   | 160.30                |
| 9       | Field Gun Factory Kanpur               | 242.61             | 242.61   | 275.53     | 307.36    | 280.81     | 295.33    | 154.85                   | 182.82                |
| 10      | Ordnance Equipment Factory Kanpur      | 462.39             | 462.39   | 548.27     | 595.07    | 655.66     | 712.30    | 457.10                   | 518.03                |
| 11      | Ordnance Parachute Factory,Kanpur      | 166.49             | 166.49   | 234.79     | 240.21    | 289.45     | 295.14    | 150.03                   | 169.96                |
| 12      | Ordnance Factory Project Korwa         | -                  | -        | 7.46       | 8.22      | 9.85       | 10.54     | 12.05                    | 15.76                 |

|                                   | STATE :BIHAR                  |         |         |         |         |         |         |         |         |
|-----------------------------------|-------------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| 13                                | Ordnance Factory Nalanda      | -       | -       | 6.02    | 7.86    | 56.28   | 63.11   | 142.49  | 164.61  |
|                                   | STATE :MADHYA PRADESH         |         |         |         |         |         |         |         |         |
| 14 Ordnance                       | Factory Katni                 | 252.00  | 252.00  | 284.04  | 314.72  | 244.28  | 276.04  | 157.90  | 176.85  |
| 15                                | Vehicle Factory Jabalpur      | 1288.28 | 1288.28 | 977.56  | 1057.85 | 1363.25 | 1529.14 | 1023.26 | 1307.20 |
| 16                                | Grey Iron Foundry,Jabalpur    | 95.72   | 95.72   | 150.11  | 169.54  | 175.00  | 198.97  | 129.67  | 152.86  |
| 17                                | Gun Carriage Factory,Jabalpur | 513.23  | 513.23  | 605.08  | 658.34  | 623.06  | 687.89  | 489.03  | 592.83  |
| 18                                | Ordnance Factory Khamaria     | 1410.40 | 1410.40 | 1848.23 | 2071.37 | 1508.56 | 1645.35 | 1030.13 | 1204.35 |
| 19                                | Ordnance Factory Itarsi       | 223.66  | 223.66  | 274.11  | 286.84  | 213.92  | 240.48  | 208.16  | 244.63  |
|                                   | STATE :WEST BENGAL            |         |         |         |         |         |         |         |         |
| 20                                | Rifle Factory Ishapore        | 303.53  | 303.53  | 295.80  | 321.43  | 319.02  | 350.14  | 253.05  | 296.22  |
| 21                                | Metal and Steel Factory       | 435.09  | 435.09  | 475.15  | 529.94  | 523.86  | 594.82  | 358.07  | 420.26  |
| 22                                | Gun and Shell Factory         | 517.48  | 517.48  | 599.15  | 666.92  | 710.59  | 789.93  | 482.28  | 575.97  |
| 23                                | Ordnance Factory Dumdum       | 130.78  | 130.78  | 133.19  | 148.92  | 143.16  | 162.25  | 119.18  | 139.54  |
|                                   | STATE :MAHARASHTRA            |         |         |         |         |         |         |         |         |
| 24 Machine Tool Factory,Ambernath | Prototype 164.23              |         | 164.23  | 189.11  | 222.77  | 228.74  | 248.00  | 198.69  | 219.57  |
| 25                                | Ordnance Factory Ambernath    | 567.00  | 567.00  | 527.78  | 585.40  | 477.37  | 539.42  | 388.15  | 454.04  |
| 26                                | Ammunition Factory Khadki     | 896.04  | 896.04  | 901.48  | 1036.90 | 1042.24 | 1143.47 | 745.96  | 870.19  |
| 27                                | High Explosive Factory,Khadki | 193.39  | 193.39  | 231.86  | 253.09  | 236.30  | 274.20  | 129.27  | 151.48  |
| 28                                | Ordnance Factory Dehu Road    | 294.85  | 294.85  | 257.67  | 289.27  | 272.76  | 316.91  | 186.21  | 211.75  |
| 29                                | Ordnance Factory Bhandara     | 322.93  | 322.93  | 374.31  | 411.74  | 345.25  | 388.41  | 240.85  | 276.98  |
| 30                                | Ordnance Factory Chandrapur   | 1336.61 | 1336.61 | 1529.01 | 1680.29 | 1349.73 | 1511.41 | 967.17  | 1108.60 |
| 31                                | Ordnance Factory Varangaon    | 477.48  | 477.48  | 531.37  | 569.19  | 429.08  | 459.05  | 345.56  | 403.29  |
| 32                                | Ordnance Factory Bhusawal     | 131.94  | 131.94  | 143.99  | 160.87  | 177.72  | 200.89  | 154.17  | 180.26  |
| 33                                | Ordnance Factory Ambajhari    | 740.47  | 740.47  | 931.93  | 991.92  | 925.87  | 1041.27 | 718.94  | 838.04  |
|                                   | STATE :ODISHA                 |         |         |         |         |         |         |         |         |
| 34                                | Ordnance Factory Bolangir     | 819.82  | 819.82  | 911.60  | 997.79  | 1094.49 | 1180.27 | 782.62  | 914.13  |

|    | STATE :TELANGANA                              |          |          |          |          |          |          |          |          |
|----|-----------------------------------------------|----------|----------|----------|----------|----------|----------|----------|----------|
| 35 | Ordnance Factory Project Medak                | 697.53   | 697.53   | 815.87   | 878.81   | 885.36   | 965.23   | 697.45   | 783.60   |
|    | STATE : TAMILNADU                             |          |          |          |          |          |          |          |          |
| 36 | Heavy Vehicle Factory,Avadi                   | 1118.13  | 1118.13  | 1357.22  | 1442.70  | 2275.92  | 2614.75  | 2265.95  | 2821.76  |
| 37 | Ordnance Clothing Factory, Avadi              | 222.80   | 222.80   | 300.29   | 300.29   | 390.24   | 390.24   | 327.17   | 355.67   |
| 38 | Engine Factory Avadi                          | 320.35   | 320.35   | 396.24   | 437.22   | 511.87   | 571.00   | 411.00   | 503.92   |
| 39 | Ordnance Factory Tiruchirapalli               | 136.53   | 136.53   | 101.67   | 111.71   | 150.31   | 165.02   | 104.61   | 122.32   |
| 40 | Heavy Alloy Penetrator Project,Tiruchirapalli | 143.86   | 143.86   | 164.88   | 181.33   | 169.06   | 198.92   | 110.13   | 127.61   |
| 41 | Cordite Factory Aruvankadu                    | 154.39   | 154.39   | 185.78   | 209.89   | 210.74   | 239.25   | 241.74   | 284.17   |
|    | OFB TOTAL                                     | 16663.63 | 16663.63 | 19052.92 | 20841.19 | 21391.93 | 23687.21 | 16659.90 | 19632.13 |

******

## ANNEXURE-II REFERRED IN THE REPLY GIVEN IN PARTS (e) & (f) OF LOK SABHA UNSTARRED QUESTION NO. 3150 FOR ANSWER ON 14.3.2018

dt.

replace

|   Sl. No. | Year    | Complaint                                                                                                                                                                                                                                              | State             | Remarks                                                                                                                                                                                                                                                                                                                                                                                                      | Corrective Steps                                                                                                                                                                                                                             |
|-----------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         1 | 2014-15 | Received from CVC vide O.M. dated 22.01.2015 regarding receipt of sub-standard material at inflated costs running into crores of rupees at Ordnance Factory Chanda, Maharashtra allegedly through some touts in league with some registered suppliers. | M A               | Receipt of sub- standard material was not established in the investigation; but it was revealed that there were lacunae in the quality checks for which CVC advised for 'Counselling' to 03 officials and to issue 'Recordable Warning' to 22 officials. The CVC advice has been fully implemented.                                                                                                          | CVO/OFB issued advisory circular dt. 28.09.2015 across the Organization regarding exercising of caution during acceptance of materials with respect to laid-down specifications & desist from deviations outside specified tolerance levels. |
|         2 | 2014-15 | CAG Report No. 35 of 2014 - Para No. 8.7 regarding Acceptance of defective Stores before Bulk Production Clearance (BPC) at Ordnance Factory Chanda.                                                                                                   | H A R A S H T R A | The investigation of CAG para was taken up by OFB/VIO during 2017.The investigation report revealed that 1000 nos. of Empties of Influence Mine Anti Tank Adrushy MK-II were supplied and accepted at Ordnance Factory Chanda before the Bulk Production Clearance given by the User and the same were found to be defective. Further investigation is going on to find responsibility of officials, if any. | The vendor has agreed to replace the defective supplies.                                                                                                                                                                                     |

......2/-

## :  2  :

<!-- image -->

|   3. | 2015-16   | Forwarded by CBI/ACB Nagpur on 24.11.2015 regarding attempt by the vendor to re-supply the same rejected lot of Cotton Yarn NE 2/2.                                                                                   |                         | Case was discovered by factory personnel and suitable disciplinary action taken on errant individual. Vendor was de- registered and Supply Order cancelled.                                                                                                                                                                                                                            | Nil                                    |
|------|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------|
|    4 | 2016-17   | Forwarded by CBI/AGB Jabalpur on 28.07.2016 regarding alleged supply of duplicate spare parts (bearings) by M/s Sidh Sales Syndicate required for the manufacture of 155mm Dhanush to Gun Carriage Factory, Jabalpur. | M A D H Y A P R A D E S | Investigation by CVO/OFB did not reveal any complicity of any officials in the supply of duplicate bearings to Gun Carriage Factory, Jabalpur. Case has been forwarded to CBI for investigation regarding supply of the duplicate Chinese bearings in place of bearings from Germany. CBI has registered FIR dated 19.07.2017, which is under the process of investigation. OFB to for | has decided debar the vendor 6 months. |

5.

2017-18  Received.  from  CVC vide O.M. dt. 08.05.2017  regarding receipt of sub- standard and inferior  critical   input material required in the  production        of anti-personnel ammunition  i.e. Hand Grenade at High Explosive Factory, Khadki, Maharashtra. M

A

H

A

R

A

S

H

T

R

A

Investigation did not reveal that sub-standard and inferior critical input material  was  accepted. But it emerged that there  were  lacunae  in quality checks and procedures.

CVC  is  yet  to  give  its advice.

6.

2017-18  CTE-type   inspection recommended by CVO/OFB in which it was found that prisms which were procured from trade sources were not tested  at  the  Quality Control Section, rather acceptance was based on feedback from the User    section     after function/fitment trials.

U

T

T

A

R

A

K

H

A

N

D

The CTE-type inspection dt. 19.12.2017 found that the Quality Control Section, which has inadequate  set-up,  has been accepting the Prisms  based  on  User feedback instead of carrying  out  mandatory quality checks.

The consolidated case is being sent to CVC.

| Received from CVC vide O.M. dated 19.02.2018 regarding acceptance of same material which was earlier rejected by Ammunition Factory Khadki, Maharashtra.   | M A H A R A S   | Under investigation.   | 7. 2017-18   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------|------------------------|--------------|

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