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| India imported military hardware, software worth 10.5 billion US $ | | Antony inaugurates 2-days GM’s conference | |
Jammu May 18 Defence Minister A K Antony inaugurated a two-day conference of the General Managers of Ordnance Factories, in New Delhi today. Indian Ordnance Factories Organization, a conglomerate of 39 Ordnance Factories, set up to produce land based military hardware exclusively for Defence use started its journey in 1802 when the British established the first factory on the bank of Hooghly near Kolkata to repair wooden gun carriages. The expansion of the organization thereafter was need based and concentrated in the years immediately after war for manufacture of products whose need was felt during the war. Since Indian Industry was at the infant stage when most of the Ordnance Factories came up, in-house manufacture of military products was planned from virgin metal. This fully integrative production approach was subsequently dispensed with when Indian Industry matured and today creation of capacity in Ordnance Factories is restricted either in strategic area or for the inputs that Indian trade cannot meet qualitative and quantitative requirement. The share of Indian trade now has risen to 46% of turnover. Indigenous content in Ordnance factories products is about 98% for established items. Even when new items under product ionization are counted, import content varies at best between 5 to 6 per cent. This high order of indigenization helped Ordnance Factories to exploit surge capacity at a very short notice to meet increased requirement during war despite sanctions imposed by overseas states. Today Ordnance Factories manufacture wide range of products starting from troop comfort items including small arms, ammunitions, weapons artillery guns transport and armored vehicle, optical equipments required by Artillery Infantry Air Defence and Mechanized Forces. The organization is around the first 20 of Defence Industry contractors of the world with turnover of around 1.5 billion US $ per annum. Production capacity in Ordnance Factories was created to meet war time requirement. Exploitation of installed capacity in full always poses a challenge requirement, during peace time being less. Notwithstanding the limitation of product centric manufacturing capacity, constant Endeavour made to assess and develop products for non Defence sector has led to develop market for almost 20 per cent of turnover in other than Defence sector. Modernization of infrastructure is another thrust area pursued continuously to upgrade technology to undertake manufacture of futuristic products in minimum response time. The organization has invested Rs. 2505 Cr. during 9th and 10th Plan for procurement of plant and machinery with upgraded technology. The modernization plan is regularly fine tuned matching with change in product mix brought about by Defence Forces at the time of induction of new products and funded through internal resources without taking any budgetary support from Government of India. Though India imported military hardware and software worth 10.5 billion US $ in last 3 years, hardly any product falling in core activity area of Ordnance Factories figures in the import basket. However, the organization is aware of the requirement of Defence Forces to acquire smart weapons and ammunitions to manage modern warfare. The technology for the product manufactured in Ordnance Factories used to flow either from DRDO, the designated Defence R&D organization or from overseas Defence industries chosen by the user. The R&D infrastructure in Ordnance Factories was limited to production technology leading to process improvement. Since Defence business management doctrine has undergone change and today Ordnance Factories have to secure order even from Defence Forces through competition, development of new products and upgrades has become a matter of paramount importance for sustained growth. Graduation from present miniscule scope on R&D to product development is an arduous task and requires specialists as well as infrastructure. Ordnance Factories are aware that this cannot be accomplished over night and delay in development will affect growth. A two-fold approach has therefore been taken, viz, develop through in-house R&D wherever possible and build infrastructure for future in collaboration with advanced technology provider. This has started yielding result. During last 3 years Ordnance Factories have supplied products worth Rs. 814 Cr. developed through in-house R&D. Further supply of products developed through collaboration is likely to commence during the current fiscal. The Ordnance Factories are expected to function like a commercial entity and to remain committed to meet planned objective of the Government like meeting requirement of Defence Forces without considering whether production of such items is economically viable, social obligation to develop backward areas (as Ordnance Factories are mostly set up in backward/remote areas). These issues are slated to be deliberated in ensuing GM Conference to evolve a strategy for managing changes, a Defence release said.
Peace keeping mission Over 19300 Armed Forces personnel deployed to UN Jammu May 18 India has been an active participant in the United Nation’s peace keeping missions since 1950. The number of Armed Forces personnel deputed to various peacekeeping missions, in the last three years stood at 19355. Of these 3579 were deputed in 2004, 6854 in 2005 and 8922 in 2006. A defence spokesman said that a sum of USD 228.99 millions was due from the UN towards reimbursements in respect of deployment on various missions till March last. The deployment of troops, equipment and reimbursement of charges therefore is a continuous process which is followed up through the Permanent Mission of India at New York or by sending special teams from time to time, the spokesman added.
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