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Defence Production Units


Production of defence equipment has always been under the purview of the government. 

India has kept defence production in the public sector since its first industrial policy, outlined in the Industry Policy Resolution of 1948. 

The Industries (Development & Regulation) Act 1951 gave statutory base to that policy. As a consequence, a large infrastructure for defence production was created in India, consisting of:
■ 39 ordnance factories (OFs)
■ eight defence public sector undertakings (PSUs) and
■ 50 research and development (R&D) laboratories.

The private sector has played a significant role in the defence industry as sub-contractors and ancillary industry, although until recently its participation was largely restricted to the supply of raw materials, semi-finished products, parts and components to:
■ defence PSUs
■ OFs
■ the base workshops of the army
■ the base repair depots of the airforce and 
■ the dockyards of the navy.

India’s 39 ordnance factories (OFs) are government units producing armaments under five categories:
■ ammunition and explosives
■ weapons
■ vehicles and equipment
■ armoured vehicles and
■ ordnance equipment (other military supplies, including general stores).

They were built to meet the growing needs of India’s armed forces over the past 60 years.

Defence public sector undertakings 

The eight defence public sector undertakings (PSUs) are public-sector corporations managed by the Indian government. They are:

■ Bharat Dynamics Ltd
■ Bharat Earth Movers Ltd
■ Bharat Electronics Ltd
■ Hindustan Aeronautics Ltd
■ Garden Reach Shipbuilders and Engineers Ltd
■ Goa Shipyard Ltd
■ Mazagon Dock Ltd and
■ Mishra Dhatu Nigam Ltd.

The defence PSUs produce a range of defence equipment. They also provide overhaul and maintenance facilities. 

Defence research and development:
India also has a defence research and development (R&D)capability: the Defence Research and Development Organisation (DRDO). 

The DRDO draws on the work of the 50 R&D laboratories/establishments.


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