Govt to set up a committee to study corporatisation of Ordnance Factory Board

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  1. The government has decided to set up a high-level committee to recommend restructuring of the Ordnance Factory Board(OFB).
  2. The committee will recommend changes required at making the (a)OFB accountable and efficient (b)increase their production capacity and (c)ensure timely supply of products.
  3. This committee was formed as OFB with 41 factories functions under the Department of Defence Production.Due to this every decision and action needs the approval of the Cabinet.
  4. On the other hand,the Defence Public Sector Undertakings(DPSU) do not have such requirements and have been establishing joint ventures and partnerships for technology development and other things.
  5. Ordnance Factory Board (OFB) consisting of the Indian Ordnance Factories is a defense contractor owned by the Indian government.It is the world’s largest government-operated production organisation.
  6. OFB predates all the other organisations like the Indian Army and the Indian Railways by over a century.The first Indian ordnance factory can trace its origins back to the year 1712 when the Dutch Company established a GunPowder Factory in Ichapur,West Bengal.