New Delhi: Modernisation of Ordnance Factories has been carried out in the last decade by procurement of state-of-the-art machines as per the Comprehensive Modernisation Plan for the 11th and 12th Five Year Plan prepared by Ordnance Factory Board (OFB) leading to induction of new and modern technologies available globally, Rajya Sabha was told.
To keep pace with the contemporary manufacturing technologies, OFB now prepares an annual investment plan towards modernisation of its existing plant and machineries and other infrastructure, Minister of State for Defence Shripad Yesso Naik said.
The Government has taken a number of steps to strengthen the functioning of OFB including delegating enhanced financial powers for Revenue and Capital procurement in September, 2016.
OFB has been granted Approval-in-Principle by the Government for capital procurement of plant and machinery for up-gradation and modernisation with estimated cost of about Rs 1,727 crores since September, 2016.
The Minister said state governments of Uttar Pradesh and Tamil Nadu have so far acquired 1,182 hectares and 1,537 hectares for defence industrial corridors respectively.
The Government has taken several steps to bring in critical technologies and modernise the defence industry in the country.
Foreign Direct Investment (FDI) policy has been revised and under the revised policy FDI is allowed under automatic route up to 49 per cent and beyond 49 per cent through government route wherever it is likely to result in access to modern technology or for other reasons to be recorded, the Minister said.
He said one approval for 100 per cent FDI inflow has been given till date. Government has issued 464 licenses till February, 2020 for manufacture of a wide range of defence items to Indian companies, out of which a total of 238 licenses have been issued since the launch of the ‘Make in India’.
The Ministry of Finance has allocated Rs 1,13,734.00 crore for BE 2020-21 under Capital Outlay on Defence Services, which is an increase of Rs 10,339.69 crore over BE 2019-20 allocation and Rs 3,339.69 crore over RE 2019-20 allocation. In RE 2019-20 Rs 7,000 crore increase has been given reversing the trend of no allocation or reduced allocation at RE stage.
