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Five factories of Ordnance Equipment Group (OEFG) under the control of Ordnance Equipment Group Headquarters Kanpur (OEF HQ) and Ordnance Factory Board Kolkata (OFB) are engaged in production of general stores and clothing (GS&C) items to meet the requirements of the Services. Army is the main recipient of these items (around 77 per cent).
Mention was made in previous Audit Reports of the Comptroller and Auditor General of India about inefficient production planning, deficiencies in procurement of stores and machinery, underperformance in production, underutilisation of resources, etc. in OEFG. Performance of these factories for the period 1999-2004 had been reviewed in audit during February-June 2004 and the results thereof were included in Paragraph 8.2 of Report No. 6 of 2005 of the Comptroller and Auditor General of India.
The performance of OEFG was reviewed by us afresh during January - July 2011 with focus on the areas of production planning, utilisation of capacity, production and issue of GS&C products of specific quality at the right time to the Army (major recipient of the products). The data for the year 2011-12, wherever stated in this Report, was collected subsequently in April 2013.