Recommending the corporatisation of the Ordnance Factory Board, the Indian Army in its latest report has stated that it has suffered losses of ₹960 crore due to production of poor quality defence equipment by the ordnance factories. The report said that ₹658.58 crore worth of ammunition was disposed of within its shelf life between April 2014 and April 2019 and mines worth ₹303.23 crore were disposed of within their shelf life since May 2016.
Stating that faulty equipment results in frequent accidents, the Army said that 403 such accidents have happened between 2014 and 2019. 27 soldiers and civilians have been killed and 159 people injured in “casualties due to OFB-manufactured ammunition and armament” since 2014, the report added.
Army's recommendation is in line with the govt's plan to convert the 41 ordnance factories, 13 development centres and nine institutes of learning under the Ordance Factory Board into corporate entities.