The improved productivity in the Ordnance Factory and capacity utilisation has enabled them to pass on the benefit to the Armed Forces by reduction of prices in the products. The Ordnance Factory Board has prepared a perspective plan in close interaction with the major indentors and has laid stress on higher modernisation. An investment of Rs. 3027 crore has been planned for procurement of state of the art plant and machinery commensurate with the technological needs of futuristic products during the Tenth Plan period (2002-2007).

        A new Ordnance Factory is being set up at Nalanda in Bihar for manufacture of futuristic bi-modular propellant charges required for heavy calibre ammunition. At present there are thirty-nine Ordnance Factories functioning with the objective of equipping the Armed Forces with arms, ammunitions and equipment. The product technology used in the Ordnance Factories is either acquired through import-transfer of technology or from the Defence Research and Development Organisation or the in-house research by the Ordnance Factory Board. The Ordnance Factory Board under the Ministry of Defence is observing the bi-centenary of the inception of the first Ordnance Factory.

        Referring to the various production programmes by the Ordnance Factories Shri Fernandes said that the T-90 tank which is an upgraded version of the T-72 tank would be developed with the experience gained in the manufacturing of the T-72 tank. Eighty T-90 tanks are expected to be supplied by Russia by the end of this year. The transfer of technology documents are also being received and the assembly of the semi-knocked down or the completely knocked down parts of the tank will commence towards the end of year 2002 and the indigenous production is scheduled to begin by the year 2006.

        Regarding export potential of the Ordnance Factories Shri Fernandes said that a plan of action is being considered to give impetus to export for optimising capacity utilisation. This will result in less cost, more employment and also reduction in prices because of the operation of the economy of scale, he added.