Reduction in production targets of ordnance factories
GOVERNMENT OF INDIA
MINISTRY OF DEFENCE
RAJYA SABHA
QUESTION NO 658
ANSWERED ON 17.12.2018
Reduction in production targets of ordnance factories
658 Smt. Chhaya Verma
Shri Vishambhar Prasad Nishad
Ch. Sukhram Singh Yadav
Will the Minister of DEFENCE be pleased to state :-
(a) whether it is a fact that due to change in the Defence policy, the production target for 2018-19 of 41 ordnance factories has been reduced to Rupees ten thousand crores, whereby indigenous micro, small and medium size private factories engaged in manufacturing of defence equipments have been pushed to the verge of closure; and
(b) whether it is also a fact that the supplies by these factories in May, 2018 against the orders placed in February, 2018 were refused and their orders were cancelled all of a sudden causing huge loss to these units?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF DEFENCE DR. SUBHASH BHAMRE
(a) & (b): Based on budget allocation for revenue expenditure to the Armed Forces, there has been reduction in procurement of supplies by Armed Forces. This has resulted in proportionate reduction in procurement of input materials by Ordnance Factories and some Ordnance Factories had to cancel / short close the Supply Orders placed on micro, small and medium enterprises (MSMEs).