Lok Sabha Question No. 2571 (UNSTARRED), answered on 2021-03-10
Subject: Ordnance Factories
Ministry: DEFENCE
Asked by: M.K. Vishnu Prasad, Magunta Sreenivasulu Reddy

## GOVERNMENT OF INDIA MINISTRY OF DEFENCE

## DEPARTMENT OF DEFENCE PRODUCTION

## LOK SABHA UNSTARRED QUESTION NO.2571

TO BE ANSWERED ON 10 th  March, 2021

## ORDNANCE FACTORIES

2571. DR.  VISHNU PRASAD M.K.: SHRI MAGUNTA SREENIVASULU REDDY:

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

- (a)  whether  the  Government  has  taken  action  to  improve  the  capability  and  production  of ordnance factories during the last five years and of the current year, if so, the details thereof and if not, the reasons therefor;
- (b) whether any new ordnance factory has been set up during the said period and if so, the details thereof;
- (c)  whether any factory is set up in Ludhiana, if so, the details thereof and if not, the reasons therefor; and
- (d)  whether  the  Government  has  any  plans  to  privatise  or  sell  a  minority  stake  in  any  of  the ordnance factories and if so, the details thereof?

## A    N    S    W    E    R

MINISTER OF STATE IN THE MINISTRY OF DEFENCE

(SHRI SHRIPAD NAIK)

(a) to (d):  A statement is attached.

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## STATEMENT REFERRED TO IN THE REPLY TO PARTS (a) TO (d) OF LOK SABHA UNSTARRED  QUESTION  NO.  2571  FOR  ANSWER  ON  10.03.2021  REGARDING 'ORDNANCE FACTORIES'

(a) Yes, Sir.  Government has taken following actions to improve capability and production of Ordnance Factory Board (OFB):

- (i) To  reduce  procurement  process  lead-time,  OFB  has  been  delegated  with  the enhanced  financial powers for Revenue and Capital procurement in September, 2016 and July, 2020.
- (ii) Giving  thrust  on  Modernisation,  OFB  has  been  granted  around  Rs.  2574  crore since  September,  2018  for  procurement  of  Plant  and  Machinery  under  New Capital and Renewal  &  Replacement  categories  for  up-gradation of their production capacities.
- (iii) To  streamline  the  purchase  process  of  OFB,  Procurement  Manual-2018  (Stores Procurement) has been approved and made effective from September, 2018.
- (iv) To increase Research and Development (R&D) activities in OFB, enhancement of delegation  of  power  up  to  Rs.10  crore  has  been  accorded  in  July,  2020  for placement of Contracts for Acquisition of Research Assistance (CARS) from the government academic institutions and government owned laboratories.
- (v) Towards ease of doing business, revised Standard Operating Procedure (SOP) for vendor registration by OFB was approved in January, 2019, thereby making the vendor registration process simplified and more business friendly.
- (vi) To provide flexibility to OFB to bid in export enquiry in a time bound manner, powers have been delegated to Member/OFB (in March, 2019) to bid in export enquiry, provided the bidding cost covers the cost of production.
- (vii) Further, in order to improve autonomy, accountability, and efficiency in Ordnance supplies,  the  Government  has  decided  to  convert  Ordnance  Factory  Board,  a subordinate office of the Ministry of Defence, into one or more than one 100% Government owned corporate entity(ies).
- (b)  No new Ordnance Factory has been set up in the country during the last five years.
- (c)  There is no proposal under consideration for setting up any new Ordnance Factory anywhere in the country including Ludhiana.

(d) No, Sir.

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