The Prime Minister commented that upgradation of these companies was ignored in the post-independence period, leading to the country’s dependence on foreign suppliers for its needs
The Government of India has decided to convert Ordnance Factory Board from a Government Department into seven 100 per cent Government owned corporate entities, as a measure to improve self-reliance in the defence preparedness of the country. Accordingly, seven new Defence companies were incorporated, namely Munitions India Limited (MIL); Armoured Vehicles Nigam Limited (AVANI); Advanced Weapons and Equipment India Limited (AWE India); Troop Comforts Limited (TCL) (Troop Comfort Items); Yantra India Limited (YIL); India Optel Limited (IOL); and Gliders India Limited (GIL).
The Prime Minister said that the decision of creating these companies was stuck for a long time, and expressed the belief these 7 new companies would form a strong base for the military strength of the country in the times to come. Noting the glorious past of Indian ordnance factories, the Prime Minister commented that upgradation of these companies was ignored in the post-independence period, leading to the country’s dependence on foreign suppliers for its needs.
“These 7 defence companies will play a major role in changing this situation”, he said.
He also mentioned that these new companies would play an important role in import substitution, in line with the vision of Atma Nirbhar Bharat. An order book of more than Rs. 65,000 Cr. reflect the increasing confidence of the country in these companies, he added.
“Our defence export has increased by 325 per cent in last five years”, he added.
He mentioned that it is our target that our companies not only establish expertise in their products but also become a global brand. He urged that while competitive cost is our strength, quality and reliability should be our identity. He further mentioned that in the 21st century, growth and brand value of any nation or any company is determined by its R&D and innovation. He appealed to the new companies that Research and innovation should be a part of their work culture, so that they just don’t catch up but take lead in future technologies.
This restructuring would provide more autonomy to the new companies to nurture innovation and expertise and the new companies should encourage such talent, he added. He urged the start-ups to become a part of this new journey through these companies to leverage the research and expertise of each other.
He mentioned that the Government has given these new companies not only a better production environment but also complete functional autonomy. He reiterated that the Government has also ensured that the interests of the employees are fully protected.