November 30, 2001
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CONFERENCE OF GENERAL MANAGERS OF ORDNANCE FACTORIES
The two day General Managers’ Conference of the Ordnance Factories begins here tomorrow. The GM’s Conference is slated to deliberate on "Perspective Plans of Ordnance Factories’. This theme will cover topics such as technology upgradation and modernization of production facilities; human resource planning and in-house R&D activities. The Perspective Plan is reviewed periodically to meet the requirements of the Armed Forces both for existing items and new products to be inducted into Services.
The Minister of State for Defence Production & Supplies, Shri Harin Pathak will inaugurate the GM’s Conference. The Defence Minister Shri George Fernandes will be delivering the valedictory address on December 2, 2001.
The Conference assumes special significance as it is being held during the bi-centenary year of the organization. It may be recalled that the first Ordnance Factory, now known as ‘Gun and Shell Factory (GSF)’ was set up in 1801 at Cossipore, near Kolkata.
Indian Ordnance Factory (IOF) Organisation, is the largest departmentally run industrial undertaking. In all, there are thirty-nine Ordnance Factories and the fortieth one is in the offing at the historic site of Nalanda in Bihar. This factory is being set up for the manufacture of futuristic bi-modular propellant charges required for heavy caliber ammunition and work on the factory is due to start soon.
The strong network of Ordnance factories has been equipping the armed forces with arms and ammunition since inception. Some of the notable products developed by the Ordnance Factories are 5.56 INSAS systems, 155mm family of ammunition. T-72 tanks and FSAPDS ammunition and Infantry Combat Vehicle (BMP-II). It has always been the endeavor of ordnance factories to supply products of superior quality. This is evident in the fact that all the 39 factories have been certified ISO-9002.
The Perspective Plan prepared last year in close interaction with the major indenter -the Armed Forces provides a structural framework for prioritizing the investment plan both for plant and machinery and human resources. An investment of Rs.3027 Crore has been planned for procurement of the state-of-the-art plant and machinery commensurate with the technological needs of futuristic products during the Tenth Plan Period (2002-2007).
While the major requirements of design and development for any new product are the responsibility of DRDO, the IOFs also carry out product and process improvement through in-house R&D. In addition, Transfer of Technology (TOT) from abroad is another method of productionisation. Some important new items, which are being or will be taken up for production in the coming years, include 155mm ammunition of longer range (TOT), 125mm Fin stabilized armour piercing ammunition with long penetrators (DRDO), Upgunning 130mm Artillery Guns to 155mm Gun (TOT), Automatic 30mm Grenade launching system (TOT), 12.7mm Air Defence Guns for the Coast Guard (OFB), Main Battle Tank Arjun (DRDO), T-90S Tank (TOT) and Mine Proof Vehicles (OFB).
The turnover of ordnance factories registered a growth of 82.5 per cent during the last three years. The turnover was Rs.5606 Crore during 2000-2001 and is expected to be Rs.6245 Crore during the current financial year 2001-2002. Out of this, Rs.5509 Crore relate to projected sales to Armed Forces and other Defence departments and the rest account for sales to Para Military Forces, civil trade and exports, indicating an increase of over 11 per cent, compared to the previous year.
Keeping in view the need to optimize capacity utilization, the ordnance factories are constantly increasing the supply to Para-Military forces and civil sector. A plan of action is also being considered to give impetus to export for optimizing capacity utilization and achieving the economies of scale.