Information from Minister of State for Defence Production

Quality of Production in Ordnance Factories

There are 39 Ordnance Factories which are involved in production of various type of military hardware and two factories of Bharat Dynamics Ltd that manufacture missiles.
Two more Ordnance Factories are being established to produce ammunition and small arms. Ordnance Factories produce arms and ammunition and other military hardware as per laid down specifications and supply to the armed forces only after the products have been accepted by the quality assurance agency.
The manufacturing cost of the arms and ammunition produced by the Ordnance Factories is competitive in most of the cases. In May, 2001, the defence sector was opened to 100 % participation by Indian private sector with cap of 26 % on FDI as part of the ongoing process of economic reforms.
Security concerns in allowing private sector to participate in defence production have been addressed by incorporating suitable provisions in the guidelines for licensing production of arms and ammunition in the private sector. This information was given by Minister of State for Defence Production Rao Inderjit Singh in a written reply to Amir Alam Khan in Rajya Sabha today.
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