Seven new defence CPSEs created

Subject – Defence and Security

Context – Seven new defence CPSEs created

Concept –

Prime minister Narendra Modi announced creation of seven state-run defence companies that will enjoy full functional autonomy and have decisive R&D orientation.
The assets of the over 200-year-old Ordnance Factory Board (OFB), including its 41 ordnance factories have been transferred to the seven new firms while OFB will cease to exist.
The new move is in sync with a series of announcements made over the last few years to promote private investments and indigenisation of India’s defence production.
- The Centre had also enhanced FDI in defence sector up to 74% through the automatic route for companies seeking new defence industrial licence and up to 100% via ‘approval route’.
- Also, defence capital outlay was increased by 18.75 % in the Budget of 2021-22.

To know about Ordnance Factory Board (OFB), please click here.