New Delhi [India], October 15 (ANI): Defence Minister Rajnath Singh on Friday stated that the private sector is working closely with the public sector for defence preparedness of the country.
While addressing the launch event of seven new defence companies, Singh said, "After liberalization, market reforms, the private sector is working closely with the public sector for the defence preparedness of the country. Today, defence manufacturing is seen as coordination of the private and public sectors."
The Defence Minister further said, "The functioning of the Ordnance Factory Board (OFB) was studied by various high-level committees over the past two decades. Its objective was to promote self-reliance to improve the functioning, and defence preparedness of the Armed Forces by these factories."
Singh further said that the defence industry has in recent years, not only moved towards self-reliance but has gone beyond with exports to scale heights that were never possible till now.
"Today our country with its full capability and potential is all set to emerge as the defence manufacturing hub of the world," he said.
He further said that since 2014, the government has brought several reforms in the defence sector to create a conducive ecosystem for exports and Foreign Direct Investment (FDI) to encourage demand for indigenous products.
Singh further said that the restructuring of OFB and converting it into seven corporate entities will give autonomy to these companies as well as help in improving accountability and efficiency in the functioning of 41 factories under the new companies.
As part of the corporatisation of the Ordnance Factories, the Central government had launched seven new companies.
The government is converting Ordnance Factory Board (OFB) into corporate entities.
These seven new defence companies will have 66 firm contracts worth Rs 65,000 crore from the three services and paramilitary forces.
The new companies are - Advanced Weapons and Equipment India Limited, Troop Comforts Ltd, Avani Armoured Vehicles, Munitions India Limited, India Optel Limited, Gliders India Limited, Yantra India Limited. (ANI)