MoD Consultative Committee Reviews Performance of New DPSUs: Focus on Modernisation, Indigenisation, and Growth

Raksha Mantri Shri Rajnath Singh commended the positive outcomes of corporatisation, noting significant improvements in productivity, quality, and financial performance.

A meeting of the Consultative Committee for the Ministry of Defence (MoD) was held in New Delhi on December 17, 2024, under the chairmanship of Raksha Mantri Shri Rajnath Singh. The committee deliberated on the roles, functions, and achievements of the new Defence Public Sector Undertakings (DPSUs) created following the corporatisation of the erstwhile Ordnance Factory Board (OFB).

During the meeting, committee members were briefed on:

Financial performance of the new DPSUs, including sales growth, profits, and capital expenditures.

Progress in modernisation of production facilities and adoption of world-class technologies.

The development of new products and ongoing R&D projects to strengthen domestic defence capabilities.

Achievements in boosting exports and enhancing collaboration with Micro, Small, and Medium Enterprises (MSMEs).

The modernisation and innovation efforts of the new DPSUs were highlighted as pivotal in aligning with the Government's goal of achieving ‘Aatmanirbhar Bharat’ (self-reliant India) in defence production.

Raksha Mantri’s Remarks

Raksha Mantri Shri Rajnath Singh commended the positive outcomes of corporatisation, noting significant improvements in productivity, quality, and financial performance. He expressed satisfaction with the progress in a short span of time, stating:

“Our new DPSUs will set new benchmarks in quality, turnover, profitability, and other financial parameters by incorporating world-class technologies. They will make India ‘Aatmanirbhar’ in the field of defence production.”

He specifically lauded efforts in indigenising critical products, modernising infrastructure, and fostering collaboration with MSMEs, which has boosted both domestic manufacturing and export potential.

Addressing HR-Related Concerns

Responding to concerns and suggestions raised by committee members regarding HR-related issues in the new DPSUs, Shri Rajnath Singh assured that all challenges emerging from corporatisation are being addressed in consultation with stakeholders. He appreciated the input provided and committed to examining suggestions for possible implementation.

Participation and Leadership

The meeting was attended by:

Raksha Rajya Mantri Shri Sanjay Seth

Chief of Defence Staff General Anil Chauhan

Secretary (Defence Production) Shri Sanjeev Kumar

Senior officers of the Ministry of Defence

Achievements Post-Corporatisation

Post corporatisation of the OFB into DPSUs, the transition has enabled:

Increased productivity and efficiency through adoption of modern production techniques.

Enhanced financial performance, reflected in improved turnover and profitability.

Greater emphasis on Research and Development (R&D) for cutting-edge defence solutions.

Promotion of export-oriented production, improving India’s standing in the global defence market.

Expansion of the domestic supply chain, empowering MSMEs and fostering innovation.

Road Ahead

Shri Rajnath Singh expressed confidence that the new DPSUs will continue to drive indigenisation and adopt world-class technologies, further solidifying India’s position as a global defence manufacturing hub. He reiterated that their efforts are instrumental to achieving the vision of Aatmanirbhar Bharat in defence production.

By addressing operational, technological, and HR challenges, the DPSUs are poised to establish themselves as global leaders, ensuring India’s defence preparedness and reducing dependency on foreign imports.

This meeting reaffirmed the Government’s commitment to ensuring a self-sufficient and modern defence industry, backed by innovation, collaboration, and sustained growth.