Press Information Bureau
Government of India
Ministry of Defence
15-July-2014 13:11 IST
Ordnance Factory Rajgir

Foundation for setting up an ordnance factory in Rajgir, Bihar was laid by the then Minister of Defence in the year 1999. The project was originally sanctioned by the Government in 2001. The offers received in response to global tenders for various plants required for production were found to be much higher than the estimated cost. Hence the Ministry of Defence decided to put the project on hold and appointed an expert Committee for reviewing the project. After examining the report of the expert Committee, it was decided in July 2007 to go ahead with the project. Accordingly revised sanction of the project cost was approved by the Government in February 2009 with project completion period of 30 months. However, CBI investigation had started in May 2009 against M/s Israeli Military Industry (IMI), Israel due to vendor’s misconduct relating to illegal gratification. M/s IMI, Israel has been debarred from doing any further business dealing with Ministry of Defence for a period of ten years. Consequent to cancellation of contract with M/s IMI, Israel for supply of BMCS Plants, it has been planned to create complete manufacturing facilities at Ordnance Factory in Rajgir for BMCS by procurement / fabrication of all the five plants for BMCS indigenously. The amount spent for the factory up to 31.5.2014, is Rs. 910.72 Crore.

A Project Monitoring Board at the level of the Ministry of Defence and a Steering Committee at the level of the OFB have been put in place to monitor the progress of the project. As on date no time line has been fixed by the Government for completion of construction of this factory because of uncertainties in procurement / fabrication of BMCS plants through indigenous route.

This information was given by Minister of State for Defence Rao Inderjit Singh in a written reply to Shri Ramchandra Prasad Singh in Rajya Sabha today.