275 items manufactured by OFB declared 'non-core', forces can procure it from OFB or open market

As many as 275 items manufactured by ordnance factories have been declared "non-core" and the armed forces are free to procure these from open market or from the Ordnance Factories Board (OFB), the government said on Monday.

In a written response to a question on whether a large number of items, which used to be manufactured in ordnance factories and defence public sector undertakings have been withdrawn by the Centre to favour private sector, Minister of State for Defence Shripad Naik replied in negative.

"However, 275 items being manufactured by ordnance factories have been declared as non-core. Accordingly, requirement of NOC (non objection certificate) from Ordnance Factory Board (OFB) for these items has been dispensed with and services are free to procure these items against Request for Proposal (RFP) from open market or from OFB," he said.

Replying to another question, Naik said 1,76,255 personnel retired from the three armed forces from 2016 to 2018.

In the last three years, 1,43,696 personnel retired from the Army, 15,057 from the Navy and 17,502 personnel from the Air Force, Naik said.

In response to a question on taxing disability pension, Naik said the CBDT in a June 24 circular clarified that tax exemption will be available only to the armed forces personnel who were invalided from service due to bodily disability attributable to or aggravated by it and not to personnel who retired on superannuation or otherwise.

"Matter is being taken up with the Ministry of Finance to clarify it," he said.

Replying to another question, Naik said capital procurement worth Rs 2,17,803 crore was made from 2016-17 to 2018-19. During the same period, the defence production by ordnance factory board and defence PSUs was Rs 1,71,207 crore.