The much-awaited and needed decision for the dissolution of the Ordnance Factory Board (OFB) will not come into effect from 1st October as per the Union Defence Ministry.
The strategic assets, management and employees of this government-owned factory 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.
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.
These changes have been implemented under the “Atmanirbhar Bharat” (self-reliant India) package and 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 to the new defence public sector units (DPSUs) on terms of foreign service.
The transferred employees would not be given any deputation allowance initially for a period of two years and 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) has offered absorption packages that 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.
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