MINISTER OF DEFENCE (SHRI A.K. ANTONY)
(a) The details of Defence Ordnance Factories, sanctioned during
Tenth and Eleventh Five Year Plan period are as under:-
(i) Ordnance Factory Nalanda was sanctioned during Ninth Plan at an
estimated cost of ` 941.13 Crores in November 2001.The project cost was
revised to ` 2160.51 Crores in January 2009 during the Eleventh Plan.
(ii) Ordnance Factory Korwa was sanctioned during the Eleventh Plan at
an estimated cost of ` 408.01 Crores in October 2007
Both the Ordnance Factories are under various stages of commissioning.
(b) Yes, Madam, the project is running behind schedule.Original date
of completion of the project was November, 2005. This was revised to
August, 2011. The expected time of completion of the project is October
2014. The main reasons for the delay in the completion of the project are:
(i) Non-commencement of the rehabilitation package for the displaced
persons by the Government of Bihar.
(ii) The soil conditions at the project site were not conducive for
construction of industrial buildings, mainly due to inundation by rain water.
(iii) Non-erection of main Bi-Modular Charge System (BMCS) Plant due to
non finalization of the contract as the quoted price was found higher than
the DPR cost.
(iv) The supplier of the main BMCS plant M/s IMI, Israel got involved in
an illegal gratification case leading to its debarment for further business
dealings for ten years.
(c) Yes, Madam.
(d) The BMCS project plant at Ordnance Factory Nalanda consists of
four plants. Out of which three plants are under various stages of
commissioning. Now, Ordnance Factory Board has proposed to procure sub-plants
for main BMCS plant from indigenous sources and integrate them with their
own expertise.
(e) The contract for the main BMCS plant with M/s IMI, Israel has been
cancelled, all Bank Guarantees submitted by firm amounting to
` 224 crores have been encashed and the firm has been debarred for further
business dealings for a period of 10 years.
