Question : Defence Companies

(a) whether the Government proposes to set up new Defence companies for strengthening and making India the world’s largest military Power under the Atmanirbhar campaign;
(b) if so, the details of new companies to be set up under the campaign;
(c) whether the Government has constituted any Group of Ministers to keep close watch and monitor the time frame schedule for setting up of such companies; and
(d) if so, the details thereof?

Answer given by the minister

MINISTER OF STATE (SHRI AJAY BHATT)
IN THE MINISTRY OF DEFENCE

(a) to (b): To enhance functional autonomy, efficiency and unleash new growth potential and innovation in Ordnance Factories, the production units of Ordnance Factory Board have been converted into 7 Defence Public Sector Undertakings with 41 units, with effect from 1st October 2021. The details are at Annexure.

(c) to (d): An Empowered Group of Ministers (EGoM) has been constituted to oversee and guide the entire process, including transition support and redeployment plan of employees while safeguarding their wages and retirement benefits. The EGoM has been further delegated the authority of the Cabinet to, inter-alia, decide upon all the matters related to implementation of the decision(s) of the Cabinet dated 16.06.2021 regarding conversion of OFB into 7 DPSUs, including all matters related to various categories of employees that may arise post implementation of the said Cabinet decision(s).The present composition of the EGoM is as under:

Minister of Defence – Chairperson.
Minister of Home Affairs.
Minister of Finance.
Minister of Law and Justice.
Minister of Labour and Employment.
Minister of State in the Ministry of Personnel, Public Grievance and Pensions.

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