Govt employees appeal to PM Modi to reverse OFB corporatisation

Government Employees National Confederation appealed to Prime Minister Narendra Modi for reversal of the Cabinet Committee's decision to convert the production units of Ordnance Factory Board into seven Defence Public Service Undertakings.

New Delhi: In a letter to Prime Minister Narendra Modi, Government Employees National Confederation appealed for reversal of the Cabinet Committee's decision to convert the production units of Ordnance Factory Board (OFB) into seven Defence Public Service Undertakings. The Cabinet on June 16 had given its assent for the creation of completely government-owned entities.

The OFB, first set up by the British in 1775, was decided by the Cabinet to be restructured into productive and profitable assets, as per reports. The OFB with customers including the Indian Armed Forces, Paramilitary Forces, State Police Forces will be restructured to improve its accountability, efficiency and competitiveness.

The letter stated the Cabinet did not consult with the Federations of employees who are major stakeholders. The letter, dated July 9, appealed to PM Modi to rethink, review and reverse the decision. Further, the employees said the drawbacks can be rectified by moderation, not by demolition.

The need of the hour is to let ordnance factories play the role of consultant to the Armed forces and help them select the right kind of platforms for both the conventional as well as likely non-conventional war.

Enlisting the types of technologies available now, the letter made note of common, saleable and strategic technologies. The focus should be on research and development rather than corporatisation to achieve the target of 'Atmanirbhar Bharat', the letter stated.

Without emphasising much on the past, the letter said, "history not only acts as a reminder of the past but also acts as a catalyst of the future." India inherited a truncated Ordnance Factories after partition. The 1962 defeat from the Chinese ended up in a severe jolt to the Industrial complex. Later, it was expanded and it proved beneficial during the conflicts of 1971 and Kargil, which was lauded by the entire nation, the letter added.

The Cabinet Committee on Security made the decision to corporatise the OFB in July 2020. It was decided to transform it into one or more government-owned corporate entities. The intention was to improve its autonomy, accountability and efficiency in ordinance supplies. The Centre had formed an Empowered Group of Ministers led by Defence Minister Rajnath Singh to monitor the process, as per reports.