Saturday, 19 September 2020

Corporatisation of Ordnance Factories

Ministry of Defence

Corporatisation of Ordnance Factories

Posted On: 19 SEP 2020 4:57PM by PIB Delhi 
 
The Cabinet Committee on Security in its meeting held on 29.07.2020, has approved to convert Ordnance Factory Board (OFB), a subordinate office of Ministry of Defence, into one or more than one 100% Government owned corporate entities, registered under the Companies Act 2013.

The Corporatisation of OFB will improve its autonomy, accountability and efficiency in Ordnance Supplies.

On the issue of corporatization of OFB, the Federations of Defence Employees working in Ordnance Factories observed a Strike from 20/08/2019 to 25/08/2019. Strike marginally affected the normal production activities in all 41 factories for five working days. Normal production resumed across all factories from 26th August, 2019 onwards.

The Department of Defence Production has been continually engaging with the Federations and Associations of Ordnance Factories with regard to their views on the said transformation. An Empowered Group of Ministers (EGoM) has been constituted under the chairmanship of Minister of Defence to oversee and guide the entire process of corporatisation of OFB, including transition support and redeployment plan of employees while safeguarding their wages and retirement benefits.

This information was given by Raksha Rajya Mantri Shri Shripad Naik in a written reply to Shri B Lingaiah Yadav in Rajya Sabha today.

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