Late Wednesday evening (June 16, 2021) the Union Cabinet took a decision to scrap the Ordnance Factory Board (OFB) which was first set up by the British in 1775. Defence Minister Rajnath Singh has assured the employees that their service conditions will remain the same.
Now, all the employees of OFB (Group A, B & C) who belong to the various production units are going to be transferred to the corporate entities on deemed deputation. The deputation will initially be for two years and there will be no changes in their service conditions as central government employees
According to the minister who will be heading the Empowered Group of Ministers, such a move will help in improving the efficiency as well as accountability. And will allow these companies autonomy.
There are around 70,000 employees in the OFB, which was under the Ministry of Defence.
What does the decision say?
According to officials, the OFB will be divided into seven different companies, in a specific manufacturing role.
All the 41 factories under the OFB will now be subsumed under one or the other of the seven new companies, all 100 per cent government owned public sector undertakings (PSU).
Have the seven companies been named?
No, not yet. PSU entities will cover a separate sector.
There will be the ‘Ammunition and Explosives Group’. The function of this entity will be to produce ammunition of various caliber and explosives. These will be both for the Indian market as well for exports.