Ordnance Factory in Nalanda (Bihar)

Ministry of Defence

Nalanda Ordnance Factory :-

The work of setting up of ordnance factory in Nalanda in Bihar has not been stopped. There are mainly four plants i.e. Nitro Cellulose (NC), Nitro Glycerine (NG), Sulphuric Acid Concentration (SAC)/Nitric Acid Concentration (NAC) and Bi-Modular Charge System (BMCS) planned to be set up at Ordnance Factory Nalanda, Bihar for manufacture of BMCS. While the work of setting up of NC, NG, SAC/NAC plants is going on as per schedule, the work of setting up BMCS plant could not commence till date.

Work was started after sanction of the project in November 2001. The project was kept in abeyance from June 2005 to June 2006. In the meantime Ordnance Factory Board (OFB) submitted a proposal for revision of project cost due to escalation and cost overrun. Accordingly, the revision of project cost was sanctioned in February 2009 with the completion period of 30 months i.e. by 5th August 2011.

No ancillary company is involved. OFB has entered into contracts with the main companies who are completing the supply of NC, NG, SAC/NAC Plants as per schedule. However, the work of BMCS Plant contracted with M/s IMI Israel has not commenced. As reported by CB.I, M/s IMI Israel was alleged to be involved in paying illegal gratification to Shri Sudipta Ghosh, former DGOF & Chairman, OFB. The case is under investigation by CBI.

The plants - NC, NG, SAC/NAC and BMCS are sequential and the output of first three plants will be utilized as input for BMCS Plant for production of BMCS. Hence, the final product BMCS can only be supplied after all the plants are commissioned and put in production.

In consultation with CVC and Ministry of Law and Justice, OFB has issued show-cause notice to M/s IMI Israel. The reply of M/s IMI has been examined and further necessary action will be contemplated/taken in consultation with Ministry of Law and Justice.

There is no such report of some foreign elements reportedly creating problems in the factory resulting in undue delay in its production system.

This information was given by Minister of State for Defence Shri MM Pallam Raju in a written reply to Shri Kaushalendra Kumar and others in Lok Sabha today.

Source: PIB