New Delhi (27.06.2026): There is no space for a new public sector defence company, however, possibility of consolidation of new state-run entities set up after reorganisation of the Ordinance Factory Board (OFB) could be explored.

Speaking at an event, Defence Secretary Rajesh Kumar Singh (IAS: 1989: KL) had responding to a question on whether there was scope for setting up any new defence PSU. “I don't think so. I think, if you ask my personal opinion, I think we have these large numbers of new companies formed by the corporatization of the OFBs and of course, we have the older companies, which are the shipyards and the Hindustan Aeronautics Limited (HAL) type of companies.”

The order books of some of the PSUs are full, particularly companies like Munitions India. He was responding to a question about the capacity utilisation of PSUs. “Their order books are quite full, and they will perhaps have to look at additional capex to expand their capacity because they may be already fully utilising their capacity. That is something that we will need to look at for the future.”