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India disbands unwieldy OFB

4th October 2021 - 01:40 GMT | by Neelam Mathews in Delhi


The Dhanush 155mm towed howitzer is one product from the Ordnance Factory Board. (Gordon Arthur)

India's public sector undertakings are inefficient and out of date. The government has moved to address this.

India’s MoD dissolved all 41 Ordnance Factories Board (OFB) entities on 1 October, transferring employees, management, control, operations and maintenance to seven new wholly-owned government companies.

The majority of the OFB’s 76,000 employees declared it a ‘black day’, but it yielded little response from the government. According to documents viewed by Shephard, the seven new companies were formed in mid-August.

The OFB currently has an order book worth around $10 billion, and these have been renegotiated as contracts with the new companies. 

As the economy limps back to pre-COVID times, the timing of the decision is perfect for India …

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