30-Sep-2022: Raksha Mantri reviews working of seven defence companies, carved out of OFB, on completion of one year of operations

Raksha Mantri Shri Rajnath Singh reviewed the working of the seven defence companies, carved out of erstwhile Ordnance Factory Board (OFB), at a meeting organised in New Delhi on September 30, 2022 to mark the completion of one year of their operations. The companies had commenced operations from October 01, 2021 before they were dedicated to the nation by Prime Minister Shri Narendra Modi on the occasion of ‘Vijayadashami’ on October 15, 2021.

During the meeting, the Raksha Mantri was briefed by the officials of Department of Defence Production on the progress made by these new DPSUs in the last one year. Addressing the officers and employees of the seven companies virtually, Shri Rajnath Singh stated that the corporatisation of OFB was a major reform in the direction of making the country ‘Aatmanirbhar’ by unleashing the true potential of these entities. He appreciated the fact that these companies are moving smoothly on the path of progress with full autonomy, efficiency and accountability, while protecting the interests of its employees, which were the base on which the Government took the decision to corporatise OFB.

 “The erstwhile OFB, with its infrastructure and skilled manpower, was a strategic asset of the country, which made valuable contribution to national security. However, in the last few decades, there were concerns of the Armed Forces regarding high costs, inconsistent quality and delay in supply of products. Being a Government department, the OFB had little accountability to show profits. There were age-old procedures, practices, paper works and rules & regulations, which had lost relevance. Getting rid of these practices was the need of the hour and corporatisation was the best way forward. The government has been handholding these companies since the beginning. It is heartening to see that they are making strides of progress,” said the Raksha Mantri.

 An amount of Rs 2,953 crore has been released to these companies in the form of equity, during the Financial Years 2021-22 and 2022-23 for modernisation and further amount of Rs 6,270 crore is planned to be released to these companies up to 2026-27 for capital expenditure. In addition, an amount of Rs 3,750 crore has been released to these companies in form of Emergency Authorisation Fund.

 The functional and financial autonomy provided to these new corporate entities, coupled with handholding by the Government, has started reflecting in their performance. Within a short span of six months i.e., October 01, 2021 to March 31, 2022, these new companies have achieved the turnover of more than Rs 8,400 crore, which is significant considering the Value of Issue of erstwhile OFB during the previous financial years. For the Financial year 2022-23 also, the seven new DPSUs have projected cumulative sales target of approx. Rs 17,000 crore, which is significantly higher as compared to previous achievements of erstwhile OFB.

 Against the production achievement of approx. Rs 5,028 crore for the period April 01, 2021 to September 30, 2021, the new DPSUs have reported production achievement of more than Rs 6,500 crore in first six months of financial year 2022-23. Post corporatisation, the new entities have shown marked improvement in productivity and quality in the changed corporate set up. In the Financial Year 2021-22, out of seven companies, six have indicated profits based on the provisional financial statements.

 To further improve the functioning of these DPSUs, Shri Rajnath Singh listed out some of the key areas which need to be focussed on. Terming the present era as technology-driven, he exhorted the companies to develop or get acquainted with latest technologies, which are vital for the defence industry to make its mark at national and international levels. He urged them to lay special emphasis on modernisation through domestic research and development as it is the strongest and the safest way forward.

 The Raksha Mantri stressed on the need to increase India’s market share across the globe, describing it as the responsibility of the companies to contribute in the efforts towards achieving the objective. He called upon the companies to devise and implement strategies with an aggressive and progressive attitude to make their presence felt in the current time of competitive bidding.

 Shri Rajnath Singh termed capital investment as another important aspect, in the context of which the Government is currently handholding the companies. He, however, stated that in this era of competition, the DPSUs should be able to raise capital from the market in the times to come, according to their aspirations.

 Highlighting the emphasis being laid by Ministry of Defence to reduce import dependency to realise Prime Minister Shri Narendra Modi’s vision of ‘Aatmanirbhar Bharat’, the Raksha Mantri said it should be the aim of the DPSUs to contribute towards increasing exports. “Defence manufacturing is an important sector to achieve the goal of self-reliance. Ministry of Defence has set a target of achieving a turnover of Rs 1.75 lakh crore in aerospace and defence goods and services by 2025, which includes exports of Rs 35,000 crore. The DPSUs must strive to achieve the goal and take the country to newer heights,” he said.

 Shri Rajnath Singh exuded confidence that in the times to come the companies will touch new milestones in turnover, profitability, market valuation and overall growth. He termed the companies as force multipliers that will take the defence production of the country forward and cement their position on the world stage.

 “India is emerging as a global defence manufacturing hub. With active participation of the private sector, our aim is to bring India among the top countries in the world in the fields of design, production, exports. Today, as our country is moving fast towards becoming a 5 trillion dollar economy. Our defence exports have increased 5-6 times to Rs 13,000 crore as compared to the last 7-8 years. The new management must explore new opportunities abroad along with meeting the domestic needs,” said Shri Rajnath Singh. He expressed hope that the new companies will play an important role in the strengthening the defence manufacturing ecosystem, but also contribute significantly to the overall development of the economy.

 Since their inception, these DPSUs have started exploring avenues to expand their business and had adopted an aggressive approach towards diversifying their customer base and product profile. During the last one year, the new companies have obtained domestic orders of more than Rs. 7,200 crore value. Some of the significant achievements of the new companies are enlisted below:

• Munitions India Limited (MIL) has obtained export orders worth more than Rs 1,500 crore for various types of ammunition in last one year. Gliders India Limited (GIL) has also obtained orders for export of Parachutes.
•  Yantra India Limited (YIL) has made significant progress in product and customer diversification. This has helped them to get orders worth more than Rs. 300 Crores from non-defence market like Indian Railways.
•  Troop Comforts Limited (TCL) has developed items like Bullet Proof Jacket, Ballistic Helmets, ECWCS etc. to enter a niche market and sustain its business in long run.
•  Armoured Vehicles Nigam Limited (AVNL) has developed a new variant of Mine Protected Vehicle designed for CRPF, which may be useful for other Armed Forces also.
•  Advanced Weapons & Equipment India Limited (AWEIL) has received an order for supply of JVPC carbines to Delhi Police.
• Munitions India Limited (MIL) has been able to successfully proof fire new variants of Pinaka Rocket i.e., Pinaka Mk-I (Extended Range) and DPICM.
• MIL has also successfully developed 40 mm UBGL ammunition, 500 Kg General Purpose Bomb and 76/62 SRGM HEDA Ammunition.
• India Optel Limited (IOL) has developed Driver Night Sights for Tanks which is a first in terms of technology of Fusion Imaging.

These new entities have initiated various measures towards optimal utilisation of their resources and cost reduction. They have also taken various cost saving measures like reduction in expenditure towards overtime and non-production activities and measures like use of solar power, water recycling, switch over to LED etc.

Chief of Defence Staff General Anil Chauhan, Chief of the Army Staff General Manoj Pande, Vice Chief of the Naval Staff Vice Admiral SN Ghormade and senior officials of Ministry of Defence were present on the occasion.

7-Feb-2022: Corporatisation of Ordinance factories

The Government is committed to safeguard the interests of erstwhile Ordnance Factory Board (OFB), as mentioned at various forums including during interactions with the Federations. Accordingly the Government has taken the following steps:

• Till such time, the employees remain on deemed deputation to the new DPSUs, they shall continue to be subject to all the extant rules, regulations and orders as are applicable to the Central Government servants, including related to their pay scales, allowances, leave, medical facilities, career progression and other service conditions.
• The pension liabilities of the retirees and existing employees will continue to be borne by the Government.  For the employees recruited after 01.01.2004, National Pension Scheme applicable to the Central Government employees is in vogue and the same would be adopted by the new DPSUs, including continuation of all special provisions applicable to Central Government employees under the National Pension System.

The Ministry has received representations from the erstwhile OFB employees’ Federations and Associations. The Department has held several discussions at various levels with them regarding their concerns about the service conditions of the employees of the erstwhile OFB. It has been explained and assured to them that the service conditions of the employees of the erstwhile OFB would continue as Central Government employees till they are on deemed deputation to the new DPSUs.

The employees of the erstwhile OFB belonging to the production units and also the identified non-production units are on deemed deputation to the seven new corporations initially for a period of two years from the Appointed Date, that is from 01.10.2021.

Currently, 115 contracts with contract value of Rs. 79,834.05 crore are available with the seven new Corporations.

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27-Sep-2022: President of India Inaugurates Integrated Cryogenic Engine Manufacturing Facility of Hindustan Aeronautics Limited

The President of India, Smt Droupadi Murmu, inaugurated the Integrated Cryogenic Engine Manufacturing Facility of Hindustan Aeronautics Limited (HAL) in Bengaluru today (September 27, 2022). She also laid the foundation stone for the Zonal Institute of Virology (South Zone) virtually on the occasion.

Addressing the gathering, the President said that inauguration of the Integrated Cryogenic Engine Manufacturing Facility is indeed a historic moment not only for HAL and ISRO, but also for the whole country to have a state-of-the-art facility to manufacture Cryogenic and Semi-cryogenic Engines. She said that HAL has contributed immensely to India’s self reliance in defence. It can be said that HAL has been the force behind the forces. HAL has time and again demonstrated its capabilities in research, development and manufacturing of various Aircraft Platforms.

The President said that ISRO has been the pride of the nation. When this institution started operations in the 1960s, India was still a young Republic, facing challenges of severe poverty and illiteracy. But there was immense potential. The rapid pace, with which ISRO has grown, caught the attention of even the most advanced and technologically developed countries. Sincere efforts and dedication of ISRO have made India emerge as the sixth country in the world to have Cryogenic Engine Manufacturing Capabilities.

The President said that HAL and ISRO together contribute to strategic defence and development. Both the organizations have played a major role in the development of various equipment and programmes which have reinforced the security and development of our country. HAL with its high end facility of manufacturing defence related equipment has proved to be an invaluable asset for our country.

The President said that the glorious past of HAL and ISRO gives us an assurance that these organisations will continue to play a significant and positive role in the future as India enters the Amrit Kaal. By 2047, when we will celebrate the 100 years of Independence, the world around us will have changed drastically. Just as we were in no position 25 years ago to imagine the contemporary world, we cannot visualise today how Artificial Intelligence and automation are going to transform life. We have completed 75 years as an independent country. We are looking ahead at the next 25 years as the period to re-imagine India and make it a developed country. It is our joint responsibility to ensure that the India of 2047 will be a much more prosperous and strong nation.

Speaking about the Covid pandemic, the President said that the resilience and extraordinary effort of our doctors and scientists helped us deal with the crisis. She noted that the Indian Council of Medical Research has provided exemplary support for effective COVID management and is expanding its research infrastructure. National Institute of Virology, Pune under Indian Council of Medical Research, is also taking all possible steps to increase R&D in the field of virology. She was happy to note that the National Institute of Virology has been designated as one of the collaborating laboratories of the World Health Organization. She said that the expansion of National Institute of Virology through Zonal Campuses across the country catering to the demands in the different geographical regions is praiseworthy.

5-Feb-2021: HAL hands over five ALHs Mk III to Indian Navy and Indian Coast Guard

Hindustan Aeronautics Limited (HAL) has handed over three Advanced Light Helicopters (ALH) Mk III to Indian Navy and two ALHs to Indian Coast Guard as part of its 16 ALHs contract during the ongoing Aero India 2021 at Air Force Station Yelahanka, Bengaluru on February 05, 2021. The helicopters were handed over by Chairman and Managing Director of HAL Shri R Madhavan to Chief of Naval Staff Admiral Karambir Singh and Director General Coast Guard Shri K Natarajan in the presence of Raksha Mantri Shri Rajnath Singh.

The ALH has clogged close to 3,00,000 cumulative flight hours and proven its mettle in versatile operations. The ALH Mk III is fitted with state-of-the-art glass cockpit and powerful Shakti engine. The contract involves integration of 19 major systems with the existing ALH MK III that include IFF MKXII & ATC Xpdr with ADS-B Out, V/UHF Communication System, Traffic Alert and Collision Avoidance (TCAS-I), SAR Homer system, Automatic Deployable Emergency Locator Transmitter (ADELT), Loud Hailer, Radio altimeter, Rescue Basket, Medical Intensive Care Unit (MICU), IADS System, AFCS, Digital Video Recording System (SSDVR), Automatic Identification System (AIS), High Intensity Search Light (HISL), Pressure Refueling System, Control grips, EO POD Rev III, Surveillance Radar System and 12.7 mm Gun system.

5-Feb-2021: HAL LUH (Army Variant) receives Initial Operational Clearance

The Light Utility Helicopter (LUH) received the Initial Operational Clearance (IOC) for the Indian Army from Centre for Military Airworthiness and Certification (CEMILAC) in the presence of Raksha Mantri Rajnath Singh during the ongoing Aero India 2021 at Air Force Station Yelahanka, Bengaluru on February 05, 2021. 

Hindustan Aeronautics Limited (HAL) Chairman and Managing Director Shri R Madhavan said the thrust is being given by HAL for indigenous R&D programmes towards self-reliance and enhancing operational effectiveness of the Armed Forces.

Director (Engg. and R&D) Mr. Arup Chatterjee stated that the performance of the basic helicopter in all terrains and under all weather conditions is satisfactory. HAL is currently in the phase of integrating and flight-testing mission role equipment on LUH. HAL is fully geared up to fulfil the requirements of the customers in time bound manner

The LUH is a three-ton class new generation single engine helicopter indigenously designed and developed by Rotary Wing Research and Design Centre of HAL with features suitable for operations in the diverse operating conditions unique to India. The LUH will replace the ageing fleet of Cheetah/Chetak helicopters operated by the Services.

The LUH is powered by a single turbo shaft engine Ardiden 1U from M/s. Safran Helicopter Engine (SHE), France with adequate power margins to accomplish high altitude missions in Himalayas with ease. LUH is equipped with Smart Cockpit Display System (Glass Cockpit), state-of-the-art HUMS (Health & Usage Monitoring System) and is designed for various utility and armed roles.

All certification activities like Ground testing, Ground Test Vehicle endurance runs, system testing, Flight testing including hot weather trials, cold weather trials, sea level trials and hot weather high altitude trials have been completed. Based on the flight trials carried out, all PJSQR requirements for basic helicopter certification have been complied satisfactorily.

5-Feb-2021: Inter-Organisational Information Sharing System (IOIS)

IAF and HAL have operationalised an e-Portal as part of Inter-Organisational Information Sharing System (IOIS) during the Aero India 2021.

The e-Portal will optimize long-term sustenance planning and reduce repair and overhaul cycle time. This will facilitate smooth, safe and secure method of data transfer between the two organisations. This will enhance optimization of task and increase efficiency in productivity and availability of spares to IAF. It will also reduce the time for finalization of tasking and budgetary quotation processes.

The initiative was launched by the Chief of the Air Staff, Air Chief Marshal RKS Bhadauria in presence of the Chairman HAL, DCAS and AOC-in-C MC. Welcoming the initiative, the CAS said that the e-Portal will bolster the competencies of both the organisations and will lead to increased serviceability of IAF weapon systems. It will also facilitate secure information sharing between IAF and HAL for better coordination, improved transparency and faster decision-making.

R Madhavan, CMD HAL, said the customer-centric portal would go a long way in leveraging the benefits of information sharing in real time. It will also enable the visibility of HAL repair milestones, provide instantaneous Budgetary quotations against IAF orders and give information on status of supply against Aircraft on Ground and tasks involved.

4-Feb-2021: HAL signs MoU with MIDHANI to develop and manufacture composite raw materials

Hindustan Aeronautics Limited (HAL) and Mishra Dhatu Nigam Limited (MIDHANI) have signed a Memorandum of Understanding (MoU) for development and production of composite raw materials during the Aero India 2021 in Bengaluru on February 04, 2021. This is the first time that such an MoU has been signed for composite raw materials. The MoU was signed by Chairman and Managing Director, HAL Shri R Madhavan and Chairman and Managing Director, MIDHANI Dr S K Jha in the presence of other senior officials.

Mr. R Madhavan said composites are one area where HAL will collaborate. Composites raw materials, mainly in the form of prepregs used in platforms like Light Combat Aircraft (LCA), Advanced Light Helicopter (ALH), Light Combat Helicopter (LCH) and Light Utility Helicopter (LUH) are currently imported.

The CMD of MIDHANI Shri S K Jha said, this is the major step forward in the area of composite materials. The HAL is not only taking care of frontline aircraft production but also raw materials. There is no equivalent proven Indian approved/qualified supplier for various types of prepregs (carbon, aramid, glass types, etc.) for the aircraft applications. This creates dependency on foreign Original Equipment Manufacturers (OEMs). Aligned with “Atmanirbhar Bharat” initiative, efforts need to be made to develop and manufacture such prepregs in India through collaboration, he added.

The usage of composites in the aerospace is going to exist and increase, particularly for fighter aircraft/helicopter because of its inherent advantages over metallic raw materials. In addition, similar requirement exists for other aerospace and defence programmes, including those of Indian Space Research Organisation (ISRO), Defence Research Development Organisation (DRDO) and National Aerospace Laboratories (NAL).

27-Feb-2020: Raksha Mantri Shri Rajnath Singh inaugurates new Light Combat Helicopter Production Hangar at HAL Complex in Bengaluru

Government has adopted Prime Minister Shri Narendra Modi’s mantra of “Make in India’, for India and the world” to build strong defence and security infrastructure in the country. This was stated by Raksha Mantri Shri Rajnath Singh after inaugurating the new Light Combat Helicopter Production Hangar at Helicopter Division in Hindustan Aeronautics Limited (HAL) Complex at Bengaluru, Karnataka today. He said, in the last five years, India has made significant progress towards manufacturing military equipment indigenously under the 'Make in India' initiative.

Stressing that defence industry plays a major role in the economic development of the country, Raksha Mantri lauded the significant contribution of organisations like HAL - a Defence Public Sector Undertaking (DPSU) that has helped India leapfrog six places to become the fifth largest economy in the world. He added that there has been increase in defence exports that have crossed Rs 17,000 crore in the last two years. Highlighting the Rs 35,000 crore exports target set for the coming years, Raksha Mantri expressed confidence that HAL, through its various platforms, will contribute significantly in achieving this milestone.

Shri Rajnath Singh commended HAL for being the backbone of the Indian Air Force and meeting the requirements of the Armed Forces. “The HAL has excelled both in operations and finance in the last five years. It has achieved operational clearance on seven platforms, including Light Combat Aircraft and Light Combat Helicopter, and overhauled platforms like Hawk and SU 30 MKI,” he said. Shri Rajnath Singh also appreciated that HAL had a turnover of Rs 19,705 crore till March 2019 and it gave shareholders a healthy dividend of 198 per cent.

Noting that HAL is now facing stiff competition from private defence industries, Raksha Mantri urged the DPSU to take this changing environment as a challenge and grab the opportunities to increase their competitiveness in the international market. He conveyed best wishes to HAL for its future projects in the field of fixed wing and rotary aircraft, hoping that the DPSU will lead India in civil aircraft business too.

Speaking on the occasion, Chairman and Managing Director Shri R. Madhavan said, LCH is completely ready for operational induction and the Helicopter Complex is fully geared up for its production. He added that the new production hangar will augment the LCH production capacity to reach a peak production of 30 helicopters per year.

HAL also apprised Raksha Mantri on the progress of new design and development programme of indigenous Indian Multi Role Helicopter (IMRH). The full-scale mock-up was showcased to Shri Rajnath Singh. The IMRH is proposed as replacement to the existing medium lift helicopters such as Mi17’s, Kamovs and Seakings which will phase out in the next eight to ten years.

LCH is a 5.5-tonne class combat helicopter designed and developed by HAL. It is powered by two Shakti engines and inherits many technical features of the Advanced Light Helicopter. LCH has the distinction of being the first attach helicopter to land in Forward Bases at Siachen, 4,700 mts above sea level with 500kg load.