News Analysis India

Tag: Ordnance Factory Board

  • CPI MP Binoy Viswam writes to Rajnath Singh, slams government decision to corporatise OFB

    By PTI

    NEW DELHI: CPI MP Binoy Viswam on Tuesday wrote to Defence Minister Rajnath Singh, slamming the government’s decision to corporatise the Ordnance Factory Board (OFB) and highlighting the “anti-worker” decisions being taken by the new management.

    Alleging that the new management has “arbitrarily” decided to alter the working conditions of the employees, Viswam said that it’s the government’s responsibility to ensure that their rights and interests are protected.

    The government dissolved the OFB with effect from October 1 and transferred its assets, employees and management to seven defence public sector units (DPSUs).

    The OFB supplies critical arms and ammunition to the armed and paramilitary forces.

    “I want to draw your attention to the escalating problems that have arisen as a result of the government’s decision to corporatise the Ordnance Factory Board (OFB) and the arbitrary anti-workers’ decisions being made by the management of the seven new corporations,” Viswam said in his letter.

    “Despite widespread opposition to the corporatisation of the Ordnance Factory Board, which employs over 70,000 people, the Union government decided to push ahead with its plan,” he alleged.

    The CPI MP claimed that certain guarantees given to the workers have not been honoured.

    “Unfortunately, in the first two weeks of this move, the new management has arbitrarily and unilaterally decided to alter the service conditions of the employees including working hours, overtime allowances, medical benefits amongst many others. Despite multiple representations by the Employees Federations to the Secretary (DP), there has been no action taken in the matter,” he said.

    He said as the Department of Defence Production embarks on this new phase, it is the responsibility of the government to ensure that the rights and interests of the employees are protected in accordance with the guarantees given to them.

    “These employees have made exemplary contributions to the defence of India and they must not be treated in an unjust manner.

    “I, therefore, urge you to intervene in this matter and ensure that the management of the seven corporations do not take unilateral decisions that go against the assurances given to employees,” he said.

    In an order dated September 28, the defence ministry said that the government has decided that all employees of the OFB (Group A, B & C) belonging to the production units and also the identified non-production units shall be transferred en masse to the new DPSUs on terms of foreign service without any deputation allowance (deemed deputation) initially for a period of two years from the appointed date (October 1).

    The seven DPSUs are Munition India Limited, Armoured Vehicles Nigam Limited, Advanced Weapons and Equipment India Limited, Troop Comforts Limited, Yantra India Limited, India Optel Limited and Gliders India Limited.

  • OFB to be dissolved on October 1, employees, assets to go to seven new DPSUs

    By PTI

    NEW DELHI: In tune with a decision by the Union Cabinet, the Ordnance Factory Board (OFB) will stand dissolved with effect from October 1 and its assets, employees and management are being transferred to seven newly established defence public sector undertakings (DPSUs), according to an official order by the defence ministry.

    The name of the seven defence PSUs are Munition India Ltd, Armoured Vehicles Nigam Ltd, Advanced Weapons and Equipment India Ltd, Troop Comforts Ltd, Yantra India Ltd, India Optel Ltd and Gliders India Ltd, the ministry said in its order.

    In a major reform initiative, the Cabinet on June 16 had approved a long-pending proposal to restructure the over 200-year-old Ordnance Factory Board that operates 41 ammunition and military equipment production facilities into seven state-owned corporate entities to improve its accountability, efficiency and competitiveness.

    Defence Minister Rajnath Singh already clarified that there will be no change in service conditions of nearly 70,000 employees of the organisation and the decision to corporatise the OFB is driven by efforts to boost India’s defence manufacturing sector.

    In the order dated September 28, the defence ministry said: “Government of India has decided to transfer, with effect from October 1, the management, control, operations and maintenance of these 41 production units and identified non-production units to seven government companies (wholly owned by the government of India).”

    The OFB is currently a defence ministry entity and supplies critical arms and ammunition to the three armed forces and the paramilitary.

    “The government has decided that all the employees of OFB (Groups A, B and C) belonging to the production units and also the identified non-production units shall be transferred en masse to the new DPSUs on terms of foreign service without any deputation allowance (deemed deputation) initially for a period of two years from the appointed date,” the order said.

    It said each of the new DPSUs is required to frame rules and regulations related to service conditions of the absorbed employees and seek an option for permanent absorption from the employees on deemed deputation to the respective DPSUs within a period of two years.

    “The service conditions of the absorbed employees would not be inferior to the existing ones,” the order said, adding a committee would be constituted by the Department of Defence Production (DDP) for guiding the new DPSUs that the absorption package given is attractive.

    It said the pension liabilities of the retirees and existing employees will continue to be borne by the government from the defence ministry’s budget.

    “For the employees recruited after January 1, 2004, the National Pension Scheme applicable to the Central Government employees is in vogue and the same may be adopted by the new DPSUs, including the continuation of all special provisions applicable to Central government employees under the National Pension System,” it said.

  • Defence Ministry dissolves Ordnance Factory Board, transfers employees and assets to seven PSUs

    By PTI

    NEW DELHI: The defence ministry has dissolved the Ordnance Factory Board (OFB) with effect from October 1 and transferred its assets, employees and management to seven public sector units (PSUs), according to an official order.

    As part of the “Atmanirbhar Bharat” (self-reliant India) package, the central government had announced on May 16 last year that it would improve autonomy, accountability and efficiency in ordnance supplies by corporatisation of the OFB.

    In an order dated September 28, the defence ministry said: “Government of India has decided to transfer, with effect from October 1, 2021, the management, control, operations and maintenance of these 41 production units and identified non-production units to seven government companies (wholly owned by the government of India).”

    According to the order, the name of the seven defence PSUs (also called DPSUs) are Munition India Limited, Armoured Vehicles Nigam Limited, Advanced Weapons and Equipment India Limited, Troop Comforts Limited, Yantra India Limited, India Optel Limited and Gliders India Limited.

    The OFB is currently a defence ministry entity and supplies critical arms and ammunition to the three armed forces and the paramilitary.

    The order said: “The government has decided that all the employees of OFB (Group A, B & C) belonging to the production units and also the identified non-production units shall be transferred en masse to the new DPSUs on terms of foreign service without any deputation allowance (deemed deputation) initially for a period of two years from the appointed date (October 1).”

    The order noted that each of the new DPSUs is required to frame rules and regulations related to service conditions of the absorbed employees. Each of the DPSUs should also “seek an option for permanent absorption from the employees on deemed deputation” to that respective DPSU, within a period of two years, it stated.

    “The service conditions of the absorbed employees would not be inferior to the existing ones. A committee would be constituted by DDP (Department of Defence Production) for guiding the new DPSUs in this regard so that the absorption package given is attractive,” the order mentioned.

  • Rajnath directs defence departments to help states in pandemic handling

    By Express News Service
    NEW DELHI:  Amidst the rising number of Covid-19 cases across the country, Defence Minister Rajnath Singh held a virtual meeting on Tuesday to review the preparedness of Ministry of Defence and the armed forces.

    The defence minister has also advised the army establishments to aid state governments in dealing with the pandemic.

    Rajnath Singh was briefed about the measures taken by Armed Forces Medical Service (AFMS), Defence Research and Development Organisation (DRDO), Defence Public Sector Undertakings (DPSUs), Ordnance Factory Board (OFB) and other departments of the Ministry of Defence such as National Cadet Corps (NCC) in providing aid to the civil administration.

    Meanwhile, Army Chief General MM Naravane issued instructions to the army establishments in various states to assist the states in dealing with the pandemic.

    At a virtual meeting with top defence brass, Singh also announced granting emergency financial powers to the three services and other defence agencies to make necessary procurement to enhance medical infrastructure in view of the pandemic, officials said.

    They said the three forces and other agencies have been asked to identify their requirement to deal with the situation and told that approvals will be given for the procurement.

    The meeting was attended by Defence Secretary Ajay Kumar, Chief of Defence Staff Gen Bipin Rawat, Chief of Naval Staff Admiral Karambir Singh, Chief of Army Staff Gen M M Naravane, Director General Armed Forces Medical Services (AFMS) Surgeon Vice Admiral Rajat Datta and DRDO Chairman G Satheesh Reddy.

    Following an earlier communication between Singh and Gen Naravane, it was decided that the Army would offer treatment to civilians in its medical facilities, wherever possible and the force would even get in touch with top leadership of the states to understand their requirements.

    Officials said the Defence Research and Development Organisation (DRDO) has already shared with private industry its oxygen generation technology that was developed for use on board Light Combat Aircraft Tejas.

    India has witnessed a massive spike in coronavirus infections with the country recording over two lakh COVID-19 cases daily in the last five days.

    In view of rapid surge in infections, India is facing an acute shortage of hospital beds, oxygen, essential drugs.

    “Singh was also informed that based on the on-board oxygen generation technology developed for LCA Tejas, a 1000 litre/minute capacity oxygen generation plants technology has been given to the industry,” the defence ministry said.

    It said the Uttar Pradesh government has already placed order of five such plants with the industry.

    The ministry said DRDO chairman Reddy said in the meeting that more oxygen producing plants can be supplied by the industry to cater to the requirements of the hospitals treating COVID-19 patients.

    He further said that SpO2 (blood oxygen saturation) based supplemental oxygen delivery system developed for soldiers posted at extreme high-altitude areas can be used for COVID patients.

    “The product, he said, will be available soon in the market from the industry as per technology provided by DRDO,” the ministry said in a statement.

    The ministry said Singh asked the armed forces to be in close contact with the civil administrations across the country and to provide any required assistance.

    Following a separate review of the coronavirus situation by the defence secretary, the ministry instructed 67 hospitals run by cantonment boards across the country to ensure medical services to cantonment residents as well as those from outside.

    Giving details about Singh’s meeting, the ministry said work is going on to set up a 450-bed hospital in Lucknow, 750-bed hospital in Varanasi and 900-bed hospital in Ahmedabad.

    In the meeting, the defence minister also discussed ways to contain the spread of COVID-19 among the Armed forces personnel and the officers and staff working in ministry.

    He focused on COVID appropriate behaviour at the workplace, stressing on the need to strictly follow all the COVID protocols such as wearing masks at all times and maintaining physical distancing.

    The Indian Army on Tuesday said it is converting its base hospital in Delhi to an exclusive COVID-19 facility for armed forces personnel as well as veterans.

    This facility will be available for COVID-19 patients from Thursday, it said on Twitter.

    The Army said on Twitter, “Base Hospital Delhi Cantt BHDC is being converted into an exclusive COVID-19 facility for Indian armed forces and veterans with effect from April 22, 2021.”

    “All OPDs (out patient department) will shift and function at Army Hospital Research and Referral (AHRR) with effect from April 22,” it added.

    Moreover, the Army said an online tri-service teleconsultation service called “SeHAT OPD” is functional right now for veterans, armed forces personnel as well as their dependents.

    “For ailments and prescriptions for continuation of medications log in to http:ehatopd.in,” it added.

    India’s total tally of COVID-19 cases climbed to 1,53,21,089 with 2,59,170 new coronavirus infections being reported in a day, while active cases surpassed the 20-lakh mark, according to the Union Health Ministry data updated on Tuesday.

    The death toll increased to 1,80,530 with a record 1,761 new fatalities, the data updated at 8 am showed.

    (With PTI Inputs)

  • Corporatisation of OFB will improve its products’ quality and expand its market: Panel

    By PTI
    NEW DELHI: The corporatisation of Ordnance Factory Board (OFB) will improve the quality of its products and expand its market, said parliamentary standing committee on defence in a report tabled in Lok Sabha on Tuesday.

    As part of the Atmanirbhar Bharat package, the central government had announced on May 16 last year that it would improve autonomy, accountability and efficiency in ordnance supplies by corporatisation of the OFB.

    The OFB is a defence ministry entity and supplies critical arms and ammunition to the three armed forces and the paramilitary.

    The parliamentary committee said in its report that it concurred with the view of the defence ministry on the issue of OFB’s corporatisation and “believe that with necessitated structural improvements, OFB will be able to further improve quality of products and expand their market”.

    The ministry informed the committee that it has appointed a consultant to suggest “organisational structural changes and business continuity plan” for the new entity or entities to continue on a sustainable basis.

    “The study by the consultant is presently under progress. The committee recommend that the details be shared with them and at the same time would like to say that the ministry should weigh all the pros and cons in favour of the OFB before arriving at any finality on the findings of the consultants,” the committee stated.

    The ministry last year held multiple meetings with various employee unions of the Ordnance Factory Board (OFB) to address their concerns regarding its corporatisation.

    In May 2019, the Indian Army had sought immediate intervention of the defence ministry to check rising cases of accidents involving battle tanks, artillery and air defence guns due to “poor quality” of ammunition being supplied to it by the OFB.

    The Army had then presented a report to the ministry listing incidents of accidents involving main guns of T-72 and T-90 and the Arjun main battle tanks, besides 105 mm field guns, 130 mm MA1 medium guns and 40 mm L-70 air defence guns, primarily due to faulty ammunition.