Question : Grievances of OEM

(a) whether the Government has received a copy of a letter from the Original Equipment Manufacturer (OEM) in Slovakia with regard to their grievances written to the Department of Defence Production (DDP), Ministry of Defence in its letter dated 4 October, 2017;

(b) if so, the details thereof;

(c) whether the Government had directed the DDP to discuss this issue further after the receipt of the said letter;

(d) if so, the details thereof and if not, the reasons therefor; and

(e) the current status of this issue raised by the said OEM from Slovakia?

MINISTER OF STATE (DR. SUBHASH BHAMRE)
IN THE MINISTRY OF DEFENCE
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(a) & (b): Yes, Madam. A copy of the letter dated 4th October 2017 from the OEM was received, whereby the Original Equipment Manufacturer (OEM) desired to know as to what was the incorrect procedure followed by Ordnance Factory Board (OFB), due to which the proposal of MoU between OFB and the OEM was returned to OFB by the Department of Defence Production (DDP).


(c) to (e): In September 2016, the DDP had directed OFB to formulate a Standard Operating Procedure (SOP) for selection of technological partners. The proposal for signing MoU with M/s Grand Power, Slovakia for co-production of small arms was deliberated by OFB in their 2nd Board meeting of 2017 held on 28th February 2017 and was subsequently forwarded for approval to DDP in March 2017. The MoU was returned to OFB in July 2017 as it was found deficient in terms of procedure followed. OFB forwarded the draft SOP in August 2017 which after examining was returned to incorporate suggestions of the Ministry. OFB after incorporating the suggestions in the SOP, forwarded revised SOP in February 2018. In March 2018, Department of Defence Production approved the above SOP.

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