Lok Sabha Question No. 1719 (UNSTARRED), answered on 2019-02-13
Subject: Modernisation of Ordnance Factories
Ministry: DEFENCE
Asked by: BHARTRUHARI MAHTAB, SANJAY SHAMRAO DHOTRE, RAHUL RAMESH SHEWALE

## GOVERNMENT OF INDIA MINISTRY OF DEFENCE

## DEPARTMENT OF DEFENCE PRODUCTION

## LOK  SABHA

## UNSTARRED QUESTION NO.1719

TO BE ANSWERED ON THE 13 TH  FEBRUARY, 2019

## MODERNISATION OF ORDNANCE FACTORIES

1719.  SHRI  BHARTRUHARI  MAHTAB:

SHRI  SANJAY  DHOTRE:

SHRI  RAHUL  SHEWALE:

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

- (a) whether  the  Government  has  any  proposal  for  modernization  of  Ordnance Factories to encourage indigenous production of defence equipments in the country and if so,  the  details  thereof  along  with  the  time  by  which  the  modernization  of  Ordnance Factories is likely to be initiated and completed;
- (b) 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;
- (c) whether  the  Government  has  received  complaints  of  supply  of  sub-standard material to Ordnance Factories during the said period;
- (d) 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
- (e) 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 IN THE MINISTRY OF DEFENCE

र  ा रा य मं ी

(DR. SUBHASH BHAMRE)

(डा. सुभाष भामरे)

- (a) Yes,  Madam.    Modernization  of  Ordnance  Factories  is  an  on-going process with an objective to create, maintain and modernize all the capital assets, with appropriate contemporary technology for indigenous production of Defence equipment.

:  2  :

(b) 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 is enclosed as Annexure-I. (c) & (d): 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. (e) Ordnance Factory  Board  has  been  granted  functional  and  financial powers for improving the functioning of Ordnance Factories.

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ANNEXURE-I  REFERRED  IN  THE  REPLY  GIVEN  IN  PART  (b)  OF  LOK  SABHA  UNSTARRED QUESTION NO. 1719 FOR ANSWER 13.02.2019

Annual  Production  and  Turnover  of  the  Ordnance  Factories  during  the  last  three  years  and  the current year, State-wise:

| SL. NO.                                  | YEAR                              | 2015-16     | 2015-16    | 2016-17     | 2016-17    | 2017-18     | 2017-18    | (Value in Crores) 2018-19 (upto Jan   | 2019)      |
|------------------------------------------|-----------------------------------|-------------|------------|-------------|------------|-------------|------------|---------------------------------------|------------|
|                                          | Factory                           | Produc tion | Turn- over | Produc tion | Turn- over | Produc tion | Turn- over | Produc tion                           | Turn- Over |
|                                          | Union Territory : Chandigarh      |             |            |             |            |             |            |                                       |            |
| 1                                        | Ordnance Cable Factory Chandigarh | 58.58 69.61 |            | 74.31       | 83.23      | 91.62       | 98.54      | 82.17                                 | 94.16      |
|                                          | STATE : UTTARAKHAND               |             |            |             |            |             |            |                                       |            |
| 2 Ordnance Dehradun                      | Factory 152.82                    | 177.6       |            | 243.63      | 274.96     | 221.76      | 235.54     | 212.05                                | 250.22     |
| 3 Opto Electronics Factory,              | Dehradun 434.97                   |             | 490.4      | 726.77      | 816.87     | 839.1       | 885.68     | 475.16                                | 536.08     |
|                                          | STATE : UTTAR PRADESH             |             |            |             |            |             |            |                                       |            |
| 4 Ordnance Factory Muradnagar            | 232.73                            | 262.88      |            | 249.12      | 282.17     | 269.55      | 269.55     | 163.21                                | 189.33     |
| 5 Ordnance Clothing Factory Shahjahanpur | 634.15                            |             | 634.15     | 691.72      | 710.4      | 504.24      | 540.22     | 249.14                                | 277.47     |
| 6 Ordnance Equipment Factory Hazratpur   | 150.16                            |             | 150.16     | 200.68      | 207.14     | 178.47      | 196.35     | 66.81                                 | 75.27      |
| 7 Ordnance Factory Kanpur                | 643.07                            |             | 713.81     | 718.15      | 801.41     | 551.15      | 554.45     | 256.66                                | 299.12     |
| 8 Small Arms Factory, Kanpur             | 179.89                            |             | 196.81     | 197.75      | 211.9      | 168.09      | 177.9      | 121.78                                | 148.11     |
| 9 Field Gun Factory Kanpur               | 275.53                            |             | 307.36     | 280.81      | 295.33     | 208.35      | 210.87     | 106.67                                | 126.8      |
| 10 Ordnance Equipment Factory Kanpur     | 548.27                            |             | 595.07     | 655.66      | 712.3      | 531.14      | 606.17     | 311.13                                | 358.47     |
| 11 Ordnance Parachute Factory, Kanpur    | 234.79                            |             | 240.21     | 289.45      | 295.14     | 177.25      | 196.83     | 121.3                                 | 141.96     |
| 12 Ordnance Factory Project Korwa        | 7.46                              |             | 8.22       | 9.85        | 10.54      | 17.93       | 17.93      | 7.12                                  | 8.3        |
|                                          | STATE :BIHAR                      |             |            |             |            |             |            |                                       |            |
| 13 Ordnance Nalanda                      | Factory 6.02                      |             | 7.86       | 56.28       | 63.11      | 150.99      | 174.57     | 284.29                                | 334.65     |

......2/-

|                                              | STATE : MADHYA PRADESH   |         |         |         |               |         |         |        |         |
|----------------------------------------------|--------------------------|---------|---------|---------|---------------|---------|---------|--------|---------|
| 14                                           | Ordnance Factory Katni   | 284.04  | 314.72  | 244.28  | 276.04        | 184.85  | 184.85  | 55.59  | 65.6    |
| 15 Vehicle Jabalpur                          | Factory 977.56           | 1057.85 | 1363.25 | 1529.14 | 1354.04       | 1687.33 | 385.95  |        | 493.94  |
| 16 Grey Iron Foundry, Jabalpur               | 150.11                   | 169.54  | 175     |         | 198.97 155.15 | 155.16  |         | 87.83  | 103.4   |
| 17 Gun Carriage Factory, Jabalpur            | 605.08                   | 658.34  | 623.06  | 687.89  | 631.54        | 680.97  | 394.45  | 453.73 |         |
| 18 Ordnance Factory Khamaria                 | 1848.23                  | 2071.37 | 1508.56 | 1645.35 | 1460.25       | 1710.07 | 1051.35 |        | 1222.96 |
| 19 Ordnance Factory Itarsi                   | 274.11                   | 286.84  | 213.92  | 240.48  | 249.13        | 254.43  | 169.45  | 199.06 |         |
| STATE : WEST BENGAL                          |                          |         |         |         |               |         |         |        |         |
| 20 Rifle Factory Ishapore                    | 295.8                    | 321.43  | 319.02  | 350.14  | 303.79        | 310.3   | 234.89  | 279.17 |         |
| 21 Metal and Steel Factory                   | 475.15                   | 529.94  | 523.86  | 594.82  | 428.74        | 428.76  | 236.93  |        | 277.74  |
| 22 Gun and Shell Factory                     | 599.15                   | 666.92  | 710.59  | 789.93  | 610.5         | 622.81  | 252.78  |        | 301.6   |
| 23 Ordnance Factory Dumdum                   | 133.19                   | 148.92  | 143.16  | 162.25  | 143.15        | 153.67  | 75.7    |        | 89.33   |
| STATE: MAHARASHTRA                           |                          |         |         |         |               |         |         |        |         |
| 24 Machine Tool Prototype Factory, Ambernath | 189.11                   | 222.77  | 228.74  | 248     | 214.46        | 219.41  | 148.55  | 165.34 |         |
| 25 Ordnance Factory Ambernath                | 527.78                   | 585.4   | 477.37  | 539.42  | 443.1         | 444.38  |         | 230.15 | 271.57  |
| 26 Ammunition Factory Khadki                 | 901.48                   | 1036.9  | 1042.24 | 1143.47 | 830.53        | 889.3   | 479.9   |        | 552.35  |
| 27 High Explosive Factory,Khadki             | 231.86                   | 253.09  | 236.3   | 274.2   | 163.09        | 165.66  | 70.86   |        | 83.62   |
| 28 Ordnance Factory Dehu Road                | 257.67                   | 289.27  | 272.76  | 316.91  | 229.61        | 251.87  |         | 182.67 | 215.55  |
| 29 Ordnance Factory Bhandara                 | 374.31                   | 411.74  | 345.25  | 388.41  | 292.29        | 302.13  | 271     |        | 271     |
| 30 Ordnance Factory Chandrapur               | 1529.01                  | 1680.29 | 1349.73 | 1511.41 | 1317.52       | 1338.33 |         | 770.3  | 881.25  |
| 31 Ordnance Factory Varangaon                | 531.37                   | 569.19  | 429.08  | 459.05  | 378.93        | 423.81  | 279.96  |        | 330.96  |
| 32 Ordnance Factory Bhusawal                 | 143.99                   | 160.87  | 177.72  | 200.89  | 168.7         | 168.7   |         | 52.19  | 61.86   |
| 33 Ordnance Factory Ambajhari                | 931.93                   | 991.92  | 925.87  | 1041.27 | 803.73        | 806.31  |         | 437.11 | 513.4   |

......3/-

|                                                   | STATE :ODISHA                  |          |          |          |          |          |          |          |          |
|---------------------------------------------------|--------------------------------|----------|----------|----------|----------|----------|----------|----------|----------|
| 34                                                | Ordnance Factory Bolangir      | 911.6    | 997.79   | 1094.49  | 1180.27  | 858.96   | 998.06   | 435.39   | 497.15   |
|                                                   | STATE :TELANGANA               |          |          |          |          |          |          |          |          |
| 35                                                | Ordnance Factory Project Medak | 815.87   | 878.81   | 885.36   | 965.23   | 882.05   | 968.78   | 608.05   | 663.58   |
|                                                   | STATE : TAMILNADU              |          |          |          |          |          |          |          |          |
| 36 Heavy Vehicle Factory,Avadi                    | 1357.22                        | 1442.7   | 2275.92  |          | 2614.75  | 2793.26  | 3546.81  | 1822.56  | 1940.22  |
| 37 Ordnance Factory,                              | Clothing Avadi                 | 300.29   | 300.29   | 390.24   | 390.24   | 338.31   | 368.12   | 202.62   | 226.52   |
| 38 Engine Avadi                                   | Factory 396.24                 | 437.22   |          | 511.87   | 571      | 485.69   | 540.32   | 397.8    | 498.13   |
| 39 Ordnance Factory Tiruchirapalli                | 101.67                         |          | 111.71   | 150.31   | 165.02   | 142.14   | 144.78   | 103.81   | 123.98   |
| 40 Heavy Alloy Penetrator Project,Tiruchirapa lli | 164.88                         |          | 181.33   | 169.06   | 198.92   | 124.65   | 125.73   | 100.51   | 117.94   |
| 41                                                | Cordite Factory Aruvankadu     | 185.78   | 209.89   | 210.74   | 239.25   | 275.69   | 275.25   | 150.86   | 178.01   |
|                                                   | OFB TOTAL:                     | 19052.92 | 20841.19 | 21391.93 | 23687.22 | 20173.49 | 22330.70 | 12146.70 | 13918.90 |

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## ANNEXURE-II  REFERRED IN THE REPLY GIVEN IN PARTS (c) & (d) OF LOK SABHA UNSTARRED QUESTION NO. 1719 FOR ANSWER ON 13.2.2019

|   Sl. No. | Year    | Complaint                                                                                                                                                                                                                                       | State          | Remarks                                                                                                                                                                                                                                                                                                       | Corrective Steps       |
|-----------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------|
|         1 | 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.                                                                                                            | Maharashtra    | Case was discovered by factory personnel and suitable disciplinary action taken on errant individual. Vendor de-registered and Order cancelled.                                                                                                                                                               | was Supply             |
|         2 | 2016-17 | Forwarded by CBI/ACB 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.                           | Madhya Pradesh | 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 OFB decided debar vendor.                      | has to the             |
|         3 | 2016-17 | Complaint received from Shri K. Saravanan indicating that the new sintering furnace is unable to give desired product output even at 15600 C; and the final product obtained using the newly purchased sintering furnace is not up to the mark. | Tamil Nadu     | investigation. Out of 4 furnaces, 1 furnace was supplied which did not meet the specification and failed to give desired outputs. Contract was short-closed and investigation revealed lacunae in inspection process of the furnace during its acceptance. Case has forwarded DDP/Vig., for first advice CVC. | been to MoD stage from |

|   4 | 2016-17   | Complaint received from M/s Kavya Trading Corporation, Bibvewadi, Pune regarding acceptance of sub- standard fabrics at Ordnance Equipment Factory                                                                                                      | Uttar Pradesh   | Investigation revealed that 9 types of fabrics were accepted by Ordnance Equipment Factory Kanpur with deviations in specification. Charge Memorandum has been served on 3 officials.                                                                                                                                                               |
|-----|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   5 | 2017-18   | Recd. from CVC vide O.M. No. Conf/7521/17/343848 dated 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     | 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 advised issue of warning letters against six officials.                                                                                                             |
|   6 | 2017-18   | Maharashtra. 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                       | Uttarakhand     | 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 has been sent to DDP/ Vig, MoD. DDP/Vig has asked for draft Charge Memorandum which is under preparation. |

.

….3/-

|   7 | 2017-18   | Recd. from CVC vide O.M. No. Conf/8083 /18/371792 dated 19.02.2018 regarding acceptance of same material which was earlier rejected by Ammunition Factory, Khadki,                            | Maharashtra   | Investigation revealed that inferior material was not accepted by the factory. CVC advised closure of case.                                                                                                                                    | the          |
|-----|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|
|   8 | 2017-18   | Maharashtra. Recd. from CVC vide O.M. No. Conf/6302/15 /355746 regarding acceptance & use of poor quality of Rapeseed Oil, Light Diesel Oil & poor quality in retrofitting of Ermat furnaces. | Maharashtra   | Investigation did not reveal that sub- standard and inferior materials were used and accepted. Case closed filed.                                                                                                                              | has been and |
|   9 | 2018-19   | Received from M/s Tex Corp Ltd., Gurgaon regarding selective sampling during inspection process of Plastic Slide Fasteners, without testing all parameters of the specification.              | Uttar Pradesh | Further clarifications have been asked against investigation report.                                                                                                                                                                           | ---          |
|  10 | 2018-19   | Surprise preventive check on input material acceptance at Ordnance Factory Muradnagar.                                                                                                        | Uttar Pradesh | Surprise check by Director Vigilance revealed that Ferro Molybdenum supplied was tested for only Molybdenum, Carbon and Silicon, but was not tested for Sulphur, Phosphorus, Copper, Aluminium, Lead and Tin. Investigation is under progress. | ---          |

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