March 14, 2002

'33'

DISPOSAL OF OBSOLETE COMPONENTS

    Rifle Factory, Ishapore (RFI) is holding inventory of finished component worth Rs. 4.24 crore out of which value of the obsolete components is Rs. 1.33 crore. The accumulation has occurred over the years due to change in ordering pattern, changed priorities of indentors and short closure of some of the indents. Compared to the outturn of approx. Rs. 2.50 crore, the accumulation of obsolete items is negligible. A committee was set up in December 2000 to find out ways of effective utilisation of the available finished components and to suggest the process for disposal of these components, if use of these components is not found feasible. The committee recommended that RFI may approach all the Ordnance Factories and the Ordnance Depots for gainful utilisation of the components followed by initiation of action for disposal of the components that are not required by other Ordnance Factories/Depots. The Rifle Factory, Ishapore and the Ordnance Factory Board are working as per expectations.

    This information was given by the Defence Minister Shri George Fernandes in a written reply to Shri Arun Kumar in Lok Sabha today.