The government on Friday claimed that its move to corporatise the Ordnance Factory Board six months back had already paid off as six of the seven defence companies it was restructured into had already reported provisional profits.
The new companies secured domestic contracts worth Rs 3,000 crore and export contracts worth Rs 600 crore in the past six months.
The production units of the Ordnance Factory Board (OFB) were converted into seven Defence Public Sector Undertakings with 41 units, with effect from October 1 last year.
Except the Yantra India Limited, all the six other companies – Munitions India Limited, Armoured Vehicles Nigam Limited, Advanced Weapons and Equipment India Limited, Troop Comforts Limited, India Optel Limited and Gliders India Limited – have reported provisional profits during the first six months of their businesses, till March 31 this year.
After restructuring the OFB into seven defence PSUs, outstanding indents with erstwhile entity were grandfathered and converted into deemed contracts valuing about Rs 70,776 crore.
Against the targets for Financial Year 2021-22, Rs 7,765 crore were credited to the new defence companies as 60% mobilisation advance before the commencement of business date.
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Published 29 April 2022, 17:10 IST
