Rajnath Singh reviews of seven new Defence PSUs

An amount of Rs 2,953 crore has been released to these new Defence PSUs in the form of equity, during the FY'22 and FY'23 for modernisation

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Defence Minister Rajnath Singh on Friday reviewed of seven new Defence PSUs (Photo: MoD)

New Delhi: Defence Minister Rajnath Singh reviewed the working of the seven defence PSUs, carved out of erstwhile Ordnance Factory Board (OFB), at a meeting organised in New Delhi on Friday to mark the completion of one year of their operations. The new Defence PSUs had commenced operations on October 01, 2021.

Addressing the officers and employees of the companies virtually, Singh stated that the corporatisation of OFB was a major reform in the direction of making the country ‘Aatmanirbhar’ by unleashing the true potential of these entities. He appreciated the fact that these companies are moving smoothly on the path of progress with full autonomy, efficiency and accountability.

During the meeting, the Defence Minister was briefed by the officials of the Department of Defence Production on the progress made by these new DPSUs in the last one year. The government has been hand holding these companies since the beginning. It is heartening to see that they are making strides of progress,” said the minister.

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An amount of Rs 2,953 crore has been released to these new Defence PSUs in the form of equity, during the Financial Years 2021-22 and 2022-23 for modernisation and a further amount of Rs 6,270 crore is planned to be released to these companies up to 2026-27 for capital expenditure. In addition, an amount of Rs 3,750 crore has been released to these companies in the form of an Emergency Authorisation Fund.

These new DPSUs have achieved a turnover of more than Rs 8,400 crore. For the Financial year 2022-23 also, the seven new DPSUs have projected cumulative sales targets of approx. Rs 17,000 crore, which is significantly higher as compared to previous achievements of erstwhile OFB.

The new DPSUs have reported production achievement of more than Rs 6,500 crore in first six months of financial year 2022-23. Post corporatisation, the new entities have shown marked improvement in productivity and quality in the changed corporate set up. In the Financial Year 2021-22, out of seven companies, six have indicated profits based on the provisional financial statements.

To further improve the functioning of these DPSUs, Raksha Mantri listed out some of the key areas which need to be focussed on. he exhorted the companies to develop or get acquainted with latest technologies, which are vital for the defence industry to make its mark at national and international levels. He urged them to lay special emphasis on modernisation through domestic research and development as it is the strongest and the safest way forward.

Highlighting the emphasis being laid by the Ministry of Defence to reduce import dependency, the government has set a target of achieving a turnover of Rs 1.75 lakh crore in aerospace and defence goods and services by 2025, which includes exports of Rs 35,000 crore. The DPSUs must strive to achieve the goal and take the country to newer heights,” he said.

He expressed hope that the new companies will play an important role in strengthening the defence manufacturing ecosystem, and also contribute significantly to the overall development of the economy.

Chief of Defence Staff General Anil Chauhan, Chief of the Army Staff General Manoj Pande, Vice Chief of the Naval Staff Vice Admiral SN Ghormade and senior officials of the Ministry of Defence were present on the occasion.

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