The Defence Ministry on Saturday categorically said there is no plan to privatise the Ordnance Factory Board (OFB) and efforts are being made to enhance the functioning of the ammunition manufacturer. This assurance came after several MPs and others raised concern over the so-called move to privatise the factories through corporatisation.
“Discussions are continuously being held by a committee of very senior officials of the Defence Ministry with employees federations of OFB and engage with them in a positive and constructive manner on all aspects relating to corporatisation of OFB. It was also clarified that the Government is not proposing to privatise OFB and any apprehension in this regard is misplaced,” said Ajay Kumar, Secretary,
Defence Production.
State-run OFB is a leading producer of ammunition for the defence forces, and has over 1 lakh employees.
The Defence Ministry in a statement on Friday had said, “Rumours being spread that OFB is being privatised are misguiding and with the intent to mislead workers.”
“Corporatisation of OFB will bring it on a par with other Defence Public Sector Undertakings (DPSUs), it said adding the interests of the workers will be adequately safeguarded in any
decision taken on the subject,” the statement said.
The committee also pointed out that the Government has been trying to strengthen the functioning of OFB, including having taken several steps to modernise the factories, re-skill OFB employees at Government cost, enable development of products and components with indigenous technology, the Ministry said on Friday. Indian Ordnance Factories are the oldest and largest industrial setup which functions under the Department of Defence Production of the
Ministry of Defence.