No proposal to privatise Ordnance Factory Board, clarifies Defence Ministry

Ministry of Defence on Friday clarified that there is no proposal to privatise the Ordnance Factory Board (OFB).

It said that the government is considering plans to turn the OFBs into public sector units fully owned by the Defence Ministry.

"In continuation of the meeting held on August 14, a Committee of senior officials of Ministry of Defence led by Additional Secretary, Department of Defence Production along with Chairman, Ordnance Factory Board (OFB) once again met the office bearers of the All India Defence Employees Federation, Indian National Defence Workers Federation, Bhartiya Pratiksha Mazdoor Sangh and Confederation of Defence Recognized Association here today on the issue of Strike notice given by them starting with effect from August 20, 2019," the defence ministry said in a statement.

"The Committee also pointed out that the employees' call for 30 days' strike was unprecedented, especially when Government has already agreed to their demand to hold discussions at the MoD level and is in process of continuously engaging with them. The Committee explained to the employee organisations that there is no proposal to privatise OFB. The proposal under consideration of Government is to make it into Defence Public Sector Undertakings (DPSUs), which is 100 per cent Government-owned," it added.

The Defence Ministry termed the "rumours" that OFB being privatised as "misguiding" and with the "intent to mislead the workers."

"Corporatisation of OFB will bring OFB at par with other DPSUs of MoD. This is in the interest of OFB as it will provide operational freedom and flexibility to OFB which it presently lacks. Besides, the interests of the workers will be adequately safeguarded in any decision taken on the subject," it said.

"The Committee also pointed out that Government has been continuously trying to strengthen the functioning of OFB, including having taken several steps to modernise the factories, carry out capital upgradation, re-train and re-skill OFB employees at Government costs, enable the development of products and components with indigenous technology," said Defence Ministry.

"The Committee urged the employee organisations to recognise Government's efforts to make OFB into a competitive, productive and efficient organisation with higher turnover and enhanced profitability, which would also be in the interest of the employees. Therefore, the Committee once again urged the employee organisations to withdraw their proposed strike," the defence ministry said.