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PARTICIPATION OF SME IN DEFENCE PRODUCTION

The latest decision of MOD relating to release of 87 items so far being produced by the Ordnance Factories, for MSME sector, will definitely improve the operational efficiency of expenditure. Additionally, it will support the Indian MSME's participation in defence production.

MOD has issued guidelines raelating to production of 87 items by Private sector, hence forth being manufactured in Ordnance Factories. Now the manufacture of the listed items require no prior NOC and these can be easily manufactured or can be bought from outside. Out of these 87 items, 48 are clothing items such as uniforms, blankets and socks to boots and rain capes, et al. The remaining 39 items under the weapons section include ammunition boxes, Bombs and Shell bodies Binoculars and Vehicles which OFs procures from Private sector.

            The Service HQ would not require NOC from OFB, here after to procure it from Private industry. Although most of these items are being produced by SME but procured by OFB and supplied to Army after adding overheads and margin. The reason behind taking this decision is it to improve the operational efficiency of expenditure. The items are;-

  • Troop Comfort and General Stores
  • Steel Packing Boxes for Arms and Ammunition

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