under utilisation of defence factories

Wednesday, August 24, 2005

Rajya Sabha


The capacity utilization in MIDHANI, GRSE, HAL, BEML and most of the Ordnance Factories is full. Capacity utilization in a few Defence production units ranges from 50% to 70% during this year. The reason for under utilization of capacities of some of the Defence production units is mainly due to reduction in the orders placed with respect to some military hardware, ammunition, Missiles, propellant charges, etc. in the current year.



The capacities in Defence factories are created, based on requirements projected by the Defence Forces from time to time. Moreover, annual requirements are given by the Defence Forces, depending on stock availability and threat perception, which varies from year to year.



Details of units, where capacity utilization is less than 80% are the following :-



Sl. No.
Factory
Expected percentage Utilisation in 2005-2006

1.
Cordite Factory, Aruvankadu
51.5%

2.
High Explosive Factory, Kirkee
60%

3.
Ordnance Factory, Bhandara
77.5%

4.
Ordnance Factory, Itarsi
55%

5.
Heavy Alloys Penetrator Project, Trichy
70%

6.
6 Units of Bharat Electronics Ltd.
50-70%

7.
Milan Missile plant of Bharat Dynamics Ltd.
20%




The issue of order placement is being pursued regularly. Constant endeavours are made to maximize exploitation of installed plant capacities by increasing efficiency. Efforts are also made to supply products to Non-Defence sector by diversifying product range available.



This information was given by the Minister of State in the Ministry of Defence and Minister of State in the Ministry of Parliamentary Affairs Shri Bijoy Krishna Handique in a written reply to Shri Thennala G. Balakrishna Pillai in Rajya Sabha today.



SKS/PS