By Express News Service
NEW DELHI: Prime Minister Narendra Modi on Friday dedicated to the nation seven new defence public sector undertakings (DPSUs), created by incorporating the dissolved erstwhile Ordnance Factory Board (OFB). The OFB was dissolved on October 1, following a decision of the Union cabinet in June. It was the country’s primary producer of weapons and military equipment.
Launching the seven new DPSUs on Dussehra, the PM said, “As India enters 75 years of Independence, we are completing projects that were stuck for a long time. The decision to revamp 41 ordnance factories and launching seven new companies is a part of that journey. This decision was pending for 15-20 years. I am confident these companies will become a major base of India’s military strength.”
Under the Atmnirbhar Bharat mission, the aim is to make India a global power, said Modi. “There is more transparency, trust and technology-driven approach in the defence sector than before. While competitive cost is our strength, quality and reliability should be our identity.”
Defence Minister Rajnath Singh termed production of defence items a key for achieving the Aatmanirbhar Bharat dream. “Since 2014, all efforts have been made to bridge the gap between age-old business methods and modern-day practices needed to make way into the global market.”
The restructuring of OFB, as reported by this paper, is aimed at transforming the ordnance factories into profitable assets, deepening specialisation in the product range, enhancing competitiveness and improving quality and cost-efficiency. The board of the 41 companies, currently a subordinate office of the Ministry of Defence, was converted into seven government-owned corporate entities with professional management. Also, pending OFB orders have been converted into deemed contracts worth over `65,000 crore for the new companies.
To safeguard the interests of OFB employees, the government has decided that over 70,000 employees (Group A, B & C) from the production units would be transferred to the corporate entities on deemed deputation initially for two years without altering their service conditions. Pension liabilities of the retirees and existing employees will be borne by the government.
Seven new companies
Munitions India Limited, Armoured Vehicles Nigam Limited, Advanced Weapons and Equipment India Limited, Troop Comforts Limited, Yantra India Limited, India Optel Limited, Gliders India Limited
70,000 OFB employees to be transferred to the corporate entities on deemed deputation for 2 years