Privatisation of ammunition manufacture kicks off in Delhi

In the government’s first high-level interaction with private firms on plans to tender ~170 billion worth of ammunition with the private sector, Defence Minister Nirmala Sitharaman was careful to placate the defence ministry-owned Ordnance Factory Board (OFB) and defence public sector undertakings (DPSUs), which have traditionally monopolised ammunition manufacture.

Addressing a Ficci-organised seminar in Delhi on Monday, Sitharaman pointedly said OFB and DPSUs have “immense opportunities and immense assets”, with which they can meet most of the military’s requirements. 

“However, they need revitalising, they need re-energising, they need to be dynamic,” she added.

Private sector firms looking at winning a piece of this