Central Govt Dissolves Ordnance Factory Board; Assets, Employees & Management Transferred To Seven PSUs

The Ordnance Factory Board (OFB) has been dissolved by the Union Defence Ministry with effect from 1^st October.

Additionally, its assets, management and employees have been transferred to about seven public sector units (PSUs).

“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),” the ministry’s official release read.

It should be noted that last year on 16 May, the central government had announced that it would improve autonomy, accountability and efficiency in ordnance supplies by corporatisation of the OFB. The announcement was made as part of the "Atmanirbhar Bharat" (self-reliant India) package.

Accordingly, all the employees of the OFB (Group A, B & C) that belong to the production unit and also the recognised non-production units will be transferred together to the new defence public sector units (DPSUs) on terms of foreign service.

They would not be given any deputation allowance initially for a period of two years.

The new DPSUs will now specifically design rules and regulations concerned around the service conditions of their absorbed employees.

The Department of Defence Production (DDP) is forming a committee that will guide the new DPSUs on this matter in order to ensure that the offered absorption packages are attractive, Economic Times reports.

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