Indian Defense
As 250-Year-Old Ordnance Factory Board Folds, Here’s What Changes And How Things Got Here
What Changes For OFB And Its Workers?
The Ministry of Defence in an order on September 28 said that the OFB will stand dissolved from October 1. Its 41 factories and the 70,000 employees on its rolls will now be split up into seven new public sector units.
The seven defence PSUs are: Munitions India Ltd, Armoured Vehicles Nigam Ltd, Advanced Weapons and Equipment India Ltd, Troop Comforts Ltd, Yantra India Ltd, India Optel Ltd and Gliders India Ltd.
The Union Cabinet had earlier this year okayed the plan to split the OFB — which has an annual turnover of around Rs 19,000 crore — into the seven DPSUs, saying that the move was designed to “enhance functional autonomy, efficiency and unleash new growth potential and innovation”.
While the OFB employees’ unions had opposed the move to corporatize OFB, the defence ministry had said in an August 2 press statement that the government had “ensured safeguarding the interests of the employees of OFB post corporatisation.
“The government has decided that all the employees of OFB (Group A, B & C) belonging to the production units and also the identified non-production units… shall be transferred en masse to the new DPSUs on terms of foreign service without any deputation allowance (deemed deputation) initially for a period of two years from the appointed date (October 1),” the ministry is reported to have said in its latest order.
The August statement had also noted that “till such time the employees remain on deemed deputation to the new entities, they shall continue to be subject to all rules and regulations as are applicable to the Central Government servants” and that their pays, allowances and other service conditions will be subject to existing rules.
What Is The Ordnance Factory Board?
The Kolkata-based OFB presides over a group 41 factories that specialise in production, testing, logistics, research, development and marketing of “a comprehensive product range in the area of land, sea and air systems”.
The origin of the OFB can be traced back to British times when the colonialists set up the Board of Ordnance at Kolkata’s Fort William in 1775. Thereafter, in 1787, a gunpowder factory was established not far from Kolkata at Ishapore, followed in 1801 by the setting up of a gun carriage factory at Cossipore, also on the outskirts of the Bengal capital.
At present, the 41 factories are made up of 11 ammunition and explosives factories, 10 weapons, vehicles and equipment factories, and a total of 20 material and components, armoured vehicles and ordnance equipment factories.
What Has Driven OFB’s Corporatisation?
The Centre had announced that these 41 factories will be bunched together under seven new companies, all of which will function as 100 per cent government-owned public sector undertakings (PSUs). The Centre has said that the restructuring will help improve the accountability, efficiency and competitiveness of these factories.
In a press release in December 2019, the Ministry of Defence had noted that “during the past two decades, several high-level committees like TKA Nair Committee, Vijay Kelkar Committee and Raman Puri Committee have… recommended that ordnance factories should be converted from a government department into a corporate entity”.
It was in pursuit of that target that the Cabinet Committee on Security had last July approved the decision to convert OFB “into one or more than one 100 per cent government-owned corporate entities, registered under the Companies Act 2013″. The latest announcement is a step towards giving effect to that decision.
How Will It Help?
The seven new entities will function like any other existing defence public sector undertaking (DPSU) such as Hindustan Aeronautics Ltd (HAL) or Bharat Electronics Limited (BEL). While the key goal is ensure smoother and more timely meeting of domestic targets, officials said that the restructuring has also been done with an eye on stepping up on India’s defence exports game. According to reports, the overhaul will be implemented by the empowered group of ministers led by Defence Minister Rajnath Singh.
What Necessitated The Restructuring?
A Comptroller and Auditor General (CAG), in the report on the ordnance factories for the year ended March 2018, noted that “production in factories continued to fall short of targets” and that the various ordnance factories “could achieve targets for only 49 per cent of items in 2017-18″. The CAG added that “a significant quantity of Army’s demand for some principal ammunition items remained outstanding as of 31 March 2018 which may adversely affect their operational preparedness”.
Inefficiencies in production and delays may deemed to be a primary reason behind the overhaul of OFB. But it was a proposal that had not found support among the workers’ unions of the factories. In its press note on corporatisation last year, the Ministry of Defence had said that “the government has taken note of the strike by workers of OFB against the proposed corporatisation and their concerns”. In response, it said that an Empowered Group of Ministers (EGoM) had been set up under the defence minister to address issues of “transition support and redeployment plan of employees while safeguarding their wages and retirement benefits”.
Announcing the restructuring plan on June 16, Defence Minister Singh said there will be no change in service conditions of the nearly 70,000 OFB employees. Further, the Centre would continue to foot the pension bill for retired and existing employees.
Indian Defense
INS Arihant’s Nuke-Capable K-4 Submarine-Launched Ballistic Missile ‘Ready To Roll’
The solid-fuelled K-4 missile is being developed by DRDO to arm the country’s nuclear-powered submarines in the shape of INS Arihant and its under-development sister vessels. INS Arihant, which became fully operational in November 2018 to complete India’s nuclear triad, is currently armed with the much shorter K-15 missiles with a 750 km range.
“The K-4 is now virtually ready for its serial production to kick-off. The two tests have demonstrated its capability to emerge straight from underwater and undertake its parabolic trajectory,” said a source.
India has the land-based Agni missiles, with the over 5,000-km Agni-V inter-continental ballistic missile now in the process of being inducted, and fighter jets jury-rigged to deliver nuclear weapons. But INS Arihant gives the country’s deterrence posture much more credibility because nuclear-powered submarines armed with nuclear-tipped missiles are considered the most secure, survivable and potent platforms for retaliatory strikes.
Once the K-4 missiles are inducted, they will help India narrow the gap with countries like the US, Russia and China, which have over 5,000-km range SLBMs. The K-4 missiles are to be followed by the K-5 and K-6 missiles in the 5,000-6,000 km range class.
The 6,000-ton INS Arihant, which is propelled by an 83 MW pressurised light-water reactor at its core, in turn, is to be followed by INS Arighat, which was launched in 2017. The next generation of nuclear submarines, currently called S-4 and S-4*, will be much larger in size.
Indian Defense
After Upgradation, Sukhoi Su-30MKI Indigenisation To Reach 78%
India has received clearance to upgrade 84 Sukhoi Su-30MKI fighter jets, which will result in 78% indigenization after the upgrade
In a significant step towards bolstering its military might with indigenously developed technology, India is poised to witness its Russian-origin Sukhoi Su-30MKI fighter jets evolve into a domestic platform. Speaking at a recent lecture.
The upgrade program is being led by Hindustan Aeronautics Limited (HAL) in partnership with the Indian Air Force and other partners. The upgrade is expected to cost US$7.5 billion.
This initiative is a part of a larger effort by the Indian Air Force to modernize its ageing fleet. Air Chief Marshal Chaudhari asserted the critical role of an offensive air force as demonstrated in current global conflicts and emphasized India’s move towards an indigenized arsenal. To this end, the IAF has been proactive, from upgrading its Mirage 2000 to enhancing its MiG-29 fleet.
In summary, the IAF’s commitment to updating their combat forces with the latest technology, including shifting to fifth-generation fighter jets, ensures operational preparedness and a strong deterrence capability. The gradual indigenization of its air fleet marks a pivotal shift in India’s defence landscape, reducing dependency on foreign imports and fostering technological sovereignty.
Indian Defense
Akash Weapon System Exports For The Armenian Armed Forces Gathers Pace
According to unconfirmed reports, Armenia is a top contender for an export order for Akash SAM system manufactured by Bharat Dynamics Limited (BDL).
The Akash export version will also be slightly different from the one inducted by the armed forces. The 100-km range air-to-air Astra missiles, now entering production after successful trials from Sukhoi-30MKI fighters, also have “good export potential”, said sources.
Akash is a “tried, tested and successfully inducted systems”. Indian armed forces have ordered Akash systems worth Rs 24,000 crore over the years, and MoD inked a contract in Mar 2023 of over Rs 9,100 crores for improved Akash Weapon System
BDL is a government enterprise under the Ministry of Defence that was established in 1970. BDL manufactures surface-to-air missiles and delivers them to the Indian Army. BDL also offers its products for export.
Akash Weapon System
The AWS is a Short Range Surface to Air Missile (SRSAM) Air Defence System, indigenously designed and developed by Defence Research and Development Organisation (DRDO). In order to meet aerial threats, two additional Regiments of AWS with Upgradation are being procured for Indian Army for the Northern borders. Improved AWS has Seeker Technology, Reduced Foot Print, 360° Engagement Capability and improved environmental parameters.
The project will give a boost to the Indian missile manufacturing industry in particular and the indigenous defence manufacturing ecosystem as a whole. The project has overall indigenous content of 82% which will be increased to 93% by 2026-27.
The induction of the improved AWS into the Indian Army will increase India’s self-reliance in Short Range Missile capability. This project will play a role in boosting the overall economy by avoiding outgo of precious foreign exchange to other countries, increasing employment avenues in India and encouraging Indian MSMEs through components manufacturing. Around 60% of the project cost will be awarded to the private industry, including MSMEs, in maintaining the supply chain of the weapon system, thereby creating large scale of direct and indirect employment.
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