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Monday, Feb 18, 2008
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Ordnance units seek foreign tie-ups

Sandeep Dikshit

OFB confident of increasing turnover beyond Rs. 10,000 crore in 3-4 years
Tie-ups proposed with Israeli, U.S., Russian firms

NEW DELHI: Even as international arms companies are tying up with Indian private sector companies, the country’s oldest defence undertaking, the Ordnance Factory Board (OFB), is planning to take the same route to beat competition. The tie-ups include, perhaps for the first time, those with Israeli and U.S. companies besides the old ally Russia.

OFB chairman Sadipta Ghosh said 32 projects were at various stages of induction, testing and development and he was confident of increasing the turnover beyond Rs. 10,000 crore in the next 3-4 years. This would mean an increase of 40 per cent over the expected turnover of Rs. 6,942 crore this fiscal.

Fourth arm

Beginning in 1802 with the Cossipore gun factory in West Bengal, the Indian Ordnance Factories organisation has now grown into a 40-unit conglomerate and is referred to as the fourth arm of Indian defence as it primarily serves the three armed forces.

The OFB has submitted proposals to the government to undertake upgrading of 155 mm (Bofors) and 105 mm artillery guns with tie-ups with Israel’s Elbit and Tata. Following the blacklisting of the South African company Denel, the OFB has managed to produce shells for the Bofors gun. It has already supplied 10,000 rounds this year and import substitution of this item will be 50,000 rounds in the next fiscal. Ammunition for the 130 mm gun has been produced in a tie-up with IMI at $200 less than its cost in Israel. An order of 10,000 shells for the Army has been executed.

The OFB also took up the production of anti-material rifles (bunker busters) which was also hit due to the ban on Denel. A contract for the bulk production of these rifles for the Border Security Force will be signed next week. It has also developed the next generation of ‘Kalantak’ 5.56 micro light range of assault rifles, currently being tested by the Army, while the Indian Air Force and the Ministry of Home Affairs have already placed indents.

T-90 tanks

The phase of manufacturing T-90 tanks with completely and semi-knocked down kits is over with the OFB making five tanks this year and planning a rollout of 100 next year. The U.S. company Holicon is collaborating for the manufacture of the future generation anti-aircraft gun, the 35 mm Skyshield, according to the OFB chairman.

Parameters met

Other major projects include tie-ups with the U.S. firm Fire for a light specialist vehicle, with BAE-SWS Systems (formerly Bofors) for upgrade of the 40 mm L70 gun and with the IMI of Israel for a remote-controlled weapon station. The OFB has also met the Army’s parameters for the Pinaka multi-barrel rocket launchers and the first lot of 300 will be handed over to the Army Vice-chief on February 27.

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