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Corporatization Of Ordnance Factory Board

Corporatization Of Ordnance Factory Board:

The Union Cabinet approved a plan to corporatise the Ordnance Factory Board (OFB).

New Structure:

  • 41 factories across the country will be dissolved into seven new Defence Public Sector Undertakings (DPSU). The newly created entities will be 100% owned by the government.
  • These entities will be responsible for different verticals of the products such as the Ammunition and Explosives group will be engaged in the production of ammunition while a Vehicles group will engage in the production of defence mobility and combat vehicles.
  • All OFB employees in the production units will be transferred to the new corporate entities on a deemed deputation initially for a period of two years without altering their service conditions as central government employees.
    Pension liabilities of the retirees and existing employees will continue to be borne by the government.


  • It is an umbrella body for the ordnance factories and related institutions and is currently a subordinate office of the Ministry of Defence (MoD).
  • The first Indian ordnance factory was set up in the year 1712 by the Dutch Company as a GunPowder Factory, West Bengal.
  • It is a conglomerate of 41 factories, 9 Training Institutes, 3 regional marketing centres and 5 regional controllers of safety.
  • Headquarters: Kolkata
  • Significance: A major chunk of the weapon, ammunition and supplies for not just armed forces but also paramilitary and police forces comes from the OFB-run factories.
  • Production includes Civilian and military-grade arms and ammunition, explosives, propellants and chemicals for missile systems, military vehicles, armoured vehicles, optical devices, parachutes, support equipment, troop clothing and general store items.