Will provide financial support to 7 new defence companies if required: Rajnath Singh

The Union Cabinet on June 16 had approved a long-pending proposal to restructure the over 200-year-old Ordnance Factory Board that operated 41 ammunition and military equipment production facilities into seven state-owned corporate entities to improve its accountability, efficiency and competitiveness.

The OFB was dissolved on October 1 and its assets, employees and management were transferred to the seven companies.

In his address, PM Modi said the seven new companies would form a strong base for the military strength of the country in the times to come.

The seven new defence companies are Munitions India Limited (MIL), Armoured Vehicles Nigam Limited (AVANI), Advanced Weapons and Equipment India Limited (AWE India), Troop Comforts Limited (TCL), Yantra India Limited (YIL), India Optel Limited (IOL) and Gliders India Limited (GIL).

In his video address, PM Modi noted the auspicious occasion of 'Vijayadashami' and the tradition of worshipping arms and ammunition on the day.

"He said, in India, we see power as a medium of creation. He remarked that with the same spirit, the nation is moving towards strength," a government release said.

Describing the decision to convert the OFB into seven defence companies as "historic", Defence Minister Singh said the move reflects the government's resolve of achieving self-reliance in defence production.

Noting that the new companies will have full potential for growth, Mr Singh said, if required, the government will provide support initially through financial and non-financial interventions.