In a radical move to increase the overall efficiency of the Ordnance Factory Board (OFB), the Union Cabinet on Wednesday cleared the proposal to split the British era organization into seven corporate entities. The government also argued that the step has been taken to improve productivity and create specializations in weapons manufacturing.
The move that was mooted almost two decades ago finally met with reality and will lead to greater accountability and efficiency of the 41 factories that function under OFB.
Defence Minister, Rajnath Singh said, "This is a historic step. We have ensured that there will be no change in the service conditions of the employees. It will help improve accountability and efficiency."
Last year, the government had fast-tracked plans to reorganize the structure of OFB, with the military also emphasising the necessity for a dependable ammunition supplier to ensure operational readiness. The military expressed concerns about OFB's existing functioning, including its failure to absorb technologies generated by the Defence Research and Development Organization.
The Indian Armed Forces are the primary consumers of Ordnance Factories. Other customers, such as Central Paramilitary Forces and State Police Forces, rely on the OFB for weaponry, ammunition, clothes, bulletproof vehicles, and mine-resistant vehicles.
Seven new government-owned corporate entities, modelled after Defence Public Sector Undertakings (DPSUs) such as Hindustan Aeronautics Limited (HAL) and Bharat Electronics Limited (BEL), would be established as part of the reforms. Ammunition and explosives, vehicles, weaponry, troop comfort, optoelectronics, and parachutes will all be handled by the entities.
Workers' union threaten strike
All three recognized federation of the ordnance factory workers with affiliations to the Left, RSS and Congress have threatened a strike if the decision is not revoked. The All-India Defence Employees' Federation (AIDEF), which is affiliated with the Left, the Bhartiya Pratiraksha Mazdoor Sangh (BPMS), an arm of RSS-affiliated Bharatiya Mazdoor Sangh, and the Indian National Defence Workers' Federation (INDWF), which is affiliated with the Indian National Trade Union Congress, are the three federations that have been opposing the move.
