The Ordnance Factory Board (OFB), which supplies arms, ammunition and clothing to the armed forces, will stand dissolved with effect from October 1, the Union government announced.
Its 41 factories, its assets and the 70,000 employees on its rolls will be split into seven new public sector units, an official order said on Tuesday, adding that OFB has an annual turnover of around Rs 19,000 crore.
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.
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).”
Each of the new DPSUs is required to frame rules and regulations related to service conditions of the absorbed employees, the order noted. 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.
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