6 of seven defence corporations carved out of OFB report provisional income in preliminary 6 months of operation

By PTI

NEW DELHI: Six out of the seven defence corporations, which have been carved out of the Ordnance Factory Board (OFB) on October 15 final yr, have reported provisional income through the preliminary six months of their operations, in keeping with the defence ministry.

In a serious reform initiative, the federal government had on June 16 final yr accredited a long-pending proposal to restructure the practically 200-year-old OFB that operates 41 ammunition and defence gear manufacturing services into seven separate company entities to enhance its accountability, effectivity and competitiveness.

The seven defence corporations have been devoted to the nation on October 15 final yr.

“It is heartening to note that six out of the seven new defence companies have reported provisional profits during the initial six months of their business growth,” Defence Minister Rajnath Singh mentioned on Twitter on Friday.

These corporations are scaling new heights and contributing to India’s defence manufacturing, he added.

In a press release, the defence ministry mentioned Munitions India Limited, Armoured Vehicles Nigam Limited, Advanced Weapons and Equipment India Limited, Troop Comforts Limited, India Optel Limited and Gliders India Limited have reported provisional income of Rs 28 crore, Rs 33.09 crore, Rs 4.84 crore, Rs 26 crore, Rs 60.44 crore and Rs 1.32 crore, respectively.

Yantra India Limited has not reported provisional income for the interval from October 1, 2021 to March 31, 2022, it talked about, including that it reported a lack of Rs 111.49 crore on this time interval.

“An amount of Rs 2,765.95 crore has been released to the seven new companies during the current financial year for capital expenditure and equity,” it said.

Within the primary six months, these new corporations have achieved the turnover of greater than Rs 8,400 crore, it famous.