The centre has decided to go ahead with corporatization of ordanance factories in interest of workers, to improve efficiency and productivity of 41 Ordnance factories, reduce import dependeny of defence equipment, enhance combat efficiency of armed forces and increase profitability of the entities for greater employment generation. There is no privatization of OFB.

Ordnance Factories set up to serve the needs of Armed forces are facing performance issues  of poor quality of products, High cost, lacking innovation, low productivity, frequent turnover of appointments etc. The proposed transformation of OFB to a publicsector corporate will have several advantages : enhanced combat efficiency,Increase production capacity, good quality, optimal costs, reduce importdependency for arms and ammunition, Increased turnover/profitability to lead toenhanced employment and better service conditions for employees and greater flexibility in technology acquisition through overseas assets. Corporate OFBwill ensure fixed secure tenure for top management based on DPE guidelines.