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Defence NewsCorporatisation of OFB would be completed within a year: Rajnath Singh

Corporatisation of OFB would be completed within a year: Rajnath Singh

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  • Corporatisation of Ordnance Factory Board (OFB) would be completed within a year, said Rajnath Singh

  • 'UP and Tamil Nadu Defence Industrial Corridors targeted to attract thousands of crores of investments in the next five years'

New Delhi: (Defence News) Defence Minister Rajnath Singh listed out the salient features of the recently announced first Defence Production and Export Promotion policy at the Atmanirbhar Bharat Defence Industry Outreach Webinar which was jointly organised by Society of Indian Defence Manufacturers (SIDM), Federation of Indian Chambers of Commerce and Industry (FICCI) and Department of Defence Production (DDP), Ministry of Defence (MoD) in the capital on Thursday.

The draft of Production and Export Promotion policy aims at providing greater visibility of Armed Forces requirements to the defence manufacturing industry. The policy proposes the establishment of an aero-engines complex with a focus on Maintenance Repair Overhaul (MRO) as well as critical technologies. Under this policy export target has been set as 25 percent of the revenue. By 2025, this policy aims at achieving Rs 1.75 lakh crore in annual turnover.

To promote Atmanirbhar Bharat in the defence manufacturing, a separate budget of Rs 52,000 crore has been set aside for procurement from domestic vendors.

Also read: Rajnath Singh launches 15 products developed by Defence PSUs and OFB

Speaking on MoD recently issuing a negative list of 101 defence items on the valuable suggestion of Prime Minister Narendra Modi, Rajnath Singh said, “After a certain period of time these items will not be procured from outside. This list is the beginning of a process that has the potential to transform the defence industry. This list of 101 items includes not only minor parts but also warfare systems, integrated platforms, combat vehicles. This list is just a beginning so that in the coming time, defence equipment worth Rs 1.40 lakh crore will be purchased domestically.”

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Singh said that the government has made several bold policy reforms to promote self-reliance, in the defence sector. These include increasing the limit to 74 percent for Foreign Direct Investment through automatic route in the Defence sector and setting up of Defence corridors in UP and Tamil Nadu in addition to Strategic Partnership (SP) Model to promote investments, liberalisation of Industrial License regime, and 'Defence Investor Cell' to address the problems of investors. “Self-reliance is actually another form of our confidence and strength. According to the formula presented by our Prime Minister five 'I', i.e., Intent, Inclusion, Investment, Infrastructure and Innovation, we have taken steps towards increasing our own strength. Its results have also started coming in front of us”, he added.

The minister informed that corporatisation of Ordnance Factory Board (OFB) would be completed within a year. In response to another question, Shri Rajnath Singh replied that the two Defence Industrial Corridors in Uttar Pradesh and Tamil Nadu were targeted to attract thousands of crores of investments in the next five years.

Also read: Defence Minister Rajnath Singh launches mobile App for NCC training

Industry representatives also sought clarifications on various reforms introduced in defence acquisition procedure including offset provisions, reservation of items for procurement from MSMEs, the definition of Indian vendor etc.

The webinar was another step of Outreach to Industry which aimed to evolve a mutually beneficial and pragmatic road map in consonance with industry expectations and capabilities.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Telegram. Join PSU Watch Channel in your Telegram and stay updated)

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