Seven new defence CPSEs created

  • October 16, 2021
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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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.

Defence Security Seven new defence CPSEs created