The Department of Industrial Policy & Promotion (DIPP) has issued 379 licenses to 230 Indian companies till June 2018 for manufacturing of defence products.
Raksha Rajya Mantri Subhash Bhamre informed the Lok Sabha in a written reply that for 2018-19, the Budget Estimate (BE) allocation to Ordnance Factory Board (OFB) by the Army is Rs 11,742.42 crore.
In 2016-17, a total value of issue to Army was Rs 11,867 crore and in 2017-18, the value of issue was Rs 11,413 crore.
Seventy licensee companies covering 114 licenses have reported commencement of production in the same period. Industrial license applications are forwarded by licensing authority that is the Ministry of Home Affairs (MHA) and DIPP to Department of Defence Production for its views.
These are examined by the Standing Committee on Private Sector Participation which comprise representatives from Ordnance Factory Board and Public Sector Undertakings.
As per the annual production data furnished by 48 companies in the financial year 2017-18, the value of their production is Rs 3,486.03 crore. The information of trials of production by such licensee companies is not compiled.
Ordnance Factories manufacture various products like artillery guns, small arms, mortars, naval guns, tanks and variants, infantry combat vehicles and variants, mine protected vehicles, logistic & special purpose vehicles, ammunition, explosives, parachutes, troop comfort equipment and day / night vision devices for the armed forces and internal security. Ordnance Factories manufacture approximately 600 principal items.