Union Cabinet has approved the splitting of the Ordnance Factory Board (OFB) and its 41 factories into seven corporate entities on the lines of Defence Public Sector Undertakings (DPSU). The move is aimed at providing these seven companies greater autonomy and improve their accountability.
The OFB has an annual turnover of around 19,000 crore rupees. These fully 100 per cent government-owned entities will deal with ammunition and explosives, vehicles -tanks, combat, and mine-protected vehicles, trawls, weapons and equipment, artillery and anti-aircraft guns, rifles, troop comfort items, optoelectronics, and parachutes.
Defence Minister Rajnath Singh, who heads the empowered group of ministers to oversee OFB’s transformation, assuaged the concerns of around 70,000 OFB employees. Mr. Singh said, there will be no change in their service conditions, salaries, retirement and other benefits. He said they should not be worried.
AIR correspondent reports that once implemented, the OFB, the establishment of which was accepted by the British in 1775, will cease to exist.
Union Cabinet approves subsidy hike for fertilizers; Also approves corporatization of Ordnance Factory Board
ByVishal Sharma
Jun 17, 2021
By Vishal Sharma
Vishal is a technology enthusiast with journalistic leanings. He was one of the first bloggers in India, coming online in 1994, even before the internet was available on a widespread basis in India. Vishal is a cybersecurity consultant working as an independent contractor for Google. A journalist with a career spanning over 20 years, he has worked for several national English dailies including The Pioneer, Indian Express, Business Standard, and more. He has also worked for Indo-American Times, and India Monthly magazine, based in the United States of America. Besides being on the editorial board of Vijayupadhyay.com, he also publishes Indian Talent Magazine, an internationally acclaimed talent promotion publication. He has extensive experience in corporate branding, online publishing, and advertising. He started Vikirna Mediatek in 2018 with a vision to bring affordable technology solutions to the common masses of an India which is fast becoming Digital, walking on the path that was heralded by the late Prime Minister of India Rajiv Gandhi and forwarded by the current Prime Minister Narendra Modi.