Ordnance Factory Board (OFB): Details on conversion to 7 PSUs, reason of corporatization, assurance given to federation etc.

Ordnance Factory Board (OFB): Details on conversion to 7 PSUs, reason of corporatization, assurance given to federation etc.

GOVERNMENT OF INDIA
MINISTRY OF DEFENCE
DEPARTMENT OF DEFENCE PRODUCTION
LOK SABHA
UNSTARRED QUESTION NO.994
TO BE ANSWERED ON 3rd DECEMBER, 2021

ORDNANCE FACTORIES

994. SHRI RAM KRIPAL YADAV:
DR. KALANIDHI VEERASWAMY:
Will the Minister of DEFENCE be pleased to state:

(a) the total number of ordnance factories within the country, State/UT-wise including Tamil Nadu;

(b) whether the Government has dissolved the Ordnance Factory Board (OFB) and transferred its assets, employees and management to seven Public Sector Units (PSUs);

(c) if so, the details thereof along with the reasons for the corporatization of the OFB; and

(d) whether the assurances given to the federations in this context have not been fulfilled, if so, the details thereof and the stand of the Government thereon?

ANSWER

MINISTER OF STATE (SHRI AJAY BHATT) IN THE MINISTRY OF DEFENCE

(a) There are 41 Ordnance Factories in the country. STATE/UT-wise status of Ordnance factories including Tamil Nadu is appended below. Details are at Annexure-C

(b) & (c) Yes Sir, to enhance functional autonomy, efficiency and unleash new growth potential and innovation in Ordnance Factories, the production units of Ordnance Factory Board have been converted into 7 Defence Public Sector Undertakings with 41 Units w.e.f. 1st October, 2021 (“Appointed Date”).

(i) The Government of India has transferred, with effect from the Appointed Date, the management, control, operations and maintenance of these 41 units to 7 Government companies (wholly owned by the Government of India), namely (i) Munitions India Limited, (ii) Armoured Vehicles Nigam Limited, (iii) Advanced Weapons and Equipment India Limited, (iv) Troop Comforts Limited, (v) Yantra India Limited, (vi)India Optel Limited, and (vii) Gliders India Limited (collectively “New DPSUs”) in respect of (a) production activities, viz production of arms, ammunitions, weapons, vehicles, defence equipment and non-defence equipment; and (b) identified non-production activities, as set out in Annexure A. The Government of India has also transferred, with effect from the Appointed Date, the management, control, operations and maintenance of certain identified non-production units of OFB and identified surplus land at 16 production units of OFB to the Directorate of Ordnance (Coordination & Services) (“Directorate”) under the DDP, as set out in Annexure B.

(ii) On and with effect from the Appointed Date, OFB, which has been set up vide Ministry of Defence letter no. 1(82)/78/D(Fy.I) dated 09.01.1979, has ceased to exist as a body.

(iii) The Government of India has also transferred all assets and liabilities of OFB to the New DPSUs and the Directorate as per the structure set out in Annexures A and B, with effect from the Appointed Date.

(iv) All the employees of OFB (Group A, B & C) belonging to the production units and also the identified non-production units (as per the structure set out in Annexure A) have been 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.

(v) All the employees of OFB (Group A, B & C) belonging to OFB HQ (at Kolkata), OFB New Delhi Office, OF Schools and OF Hospitals (Group A, B & C), have been transferred en masse to the Directorate under DDP, initially for a period of two years from the Appointed Date.

(d) The Government is committed to safeguard the interests of the employees of erstwhile Ordnance Factory Board (OFB), as mentioned at various forums including during interactions with the Federations. Accordingly the Government has taken the following steps:-

(i) All the employees of OFB (Group A, B & C) belonging to the production units and also the identified non-production units (as per the structure set out in Annexure-A) have been 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.

(ii) Till such time, the employees remain on deemed deputation to the new DPSUs, they shall continue to be subject to all the extant rules, regulations and orders as are applicable to the Central Government servants, including related to their pay scales, allowances, leave, medical facilities, career progression and other service conditions.

(iii) All the employees of OFB (Group A, B & C) belonging to OFB Head Quarter (at Kolkata), OFB New Delhi Office, OF Schools and OF Hospitals have been transferred en masse to the Directorate of Ordnance (Coordination & Services) under the Department of Defence Production, initially for a period of two years from the Appointed Date.

(iv) The pension liabilities of the retirees and existing employees will continue to be borne by the Government. For the employees recruited after 01.01.2004, National Pension Scheme applicable to the Central Government employees is in vogue and the same would be adopted by the new DPSUs, including continuation of all special provisions applicable to Central Government employees under the National Pension System.

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ANNEXURE-A 

Structure for Transfer of Production Units and identified Non-Production Units to the 7 New
DPSUs

*Ordnance Factories Institute of Learning, Kanpur would continue to cater to the training needs of the staff of Gliders India Limited.

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ANNEXURE-B 

Structure for Transfer of identified Non-Production Units and Surplus Land to the Directorate of Ordnance (Coordination & Services)

ANNEXURE-C

Ordnance Factories (State/UT-wise)

Source: Lok Sabha PDF