Question : DEFENCE PRODUCTION UNITS



(a) the number of Defence Production Units in the country at present;

(b) the extent to which the requirement of the country is fulfilled by these units in terms of percentage along with the number of people employed in these units;

(c) whether private producers are also there in the area of defence production in the country; and

(d) if so, the quantum of production by the private players for the country and for export and the foreign direct investment in these private companies?

Answer given by the minister


MINISTER OF STATE (RAO INDERJIT SINGH) IN THE MINISTRY OF DEFENCE

(a) Ordnance Factory Board (OFB) consisting of 41 factories and 9 Defence Public Sector Undertakings (DPSUs) with 40 production units in the country are involved in the production of defence items. Besides this, Government has issued 222 number of Licenses to 131 public / private sector companies till 31.10.2014 for manufacture of wide range of defence items. 46 licensed companies covering 72 licenses have so far reported commencement of production.

(b) Over a three year period, i.e. 2010-11, 2011-12 and 2012-13, about 69% of the total capital and revenue requirement of the services was met through indigenous procurement.

The total number of employees deployed in Ordnance Factory Board (OFB) and 9 Defence Public Sector Undertakings (DPSUs) as on 31.10.2014 is approximately 1.65 lakhs. The data on people employed in private sector is not maintained in the Department.

(c) Yes, Madam.

(d) Data related to production by the private companies is not maintained in the Ministry. Department of Defence Production has issued No Objection Certificates (NOCs) to Private Exporters for export of Military Stores for an amount of Rs.286 crore during the year 2013-14. 29 private sector companies are having FDI varying up to 26%.

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