India
oi-Ajay Joseph Raj P
New Delhi, June 16: In a significant reform initiative, the federal government on Wednesday authorized a long-pending proposal to restructure the almost 200-year-old Ordnance Manufacturing unit Board that operates 41 ammunition and defence tools manufacturing services into seven separate company entities to enhance its accountability, effectivity and competitiveness.
The choice to corporatise the OFB on the strains of defence public sector undertakings was taken at a gathering of the union cupboard, almost 20 years after the reform measure was mooted to deliver professionalism and considerably improve its productiveness.
Describing it as a “historic choice”, Defence Minister Rajnath Singh mentioned there will likely be no change in service circumstances of almost 70,000 workers of the organisation and the choice is pushed by efforts to spice up India’s defence manufacturing sector.
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“It’s a huge choice that enhances India’s nationwide safety necessities. It would assist in reaching our targets for defence manufacturing. There will likely be no change in service circumstances of the workers,” he advised a small group of journalists.
Officers mentioned every of the seven entities will likely be like some other defence public sector enterprise (DPSU) and they are going to be operated by skilled administration with a bigger objective of enhancing the product vary, enhance competitiveness and enhance cost-efficiency.
They mentioned the reform course of is being carried out as a part of Prime Minister Narendra Modi’s imaginative and prescient for self-reliance within the defence sector. “All workers of OFB (Group A, B and C) belonging to the manufacturing models can be transferred to the company entities on deemed deputation initially for a interval of two years with out altering their service circumstances as central authorities workers,” mentioned an official.
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The pension liabilities of the retired and current workers will proceed to be borne by the federal government, in response to the Cupboard choice. At current, the OFB features beneath the division of defence manufacturing of the Ministry of Defence.
The seven entities will embody an ammunition and explosives group, automobiles group, weapons and tools group, ‘troop consolation objects group’, ancillary group, optoelectronics group and parachute group, the officers mentioned.
The ammunition and explosives group can be primarily engaged within the manufacturing of ammunition of varied calibre and explosives and its focus can be to use the massive potential to develop exponentially together with for the export market.
The automobiles group would primarily interact within the manufacturing of defence mobility and fight automobiles equivalent to tanks, BMPs (infantry combating car) and mine protected automobiles. The main target of the group can be to extend its share within the home market by way of higher capability utilisation and likewise to discover new export markets.
The weapons and tools group can be primarily engaged within the manufacturing of small arms, medium and large-calibre weapons, and different weapon methods and is anticipated to extend its share within the home market by way of assembly home demand in addition to product diversification, the officers mentioned.
“Immediately’s choice would permit these firms autonomy, in addition to assist enhance accountability and effectivity within the functioning of the 41 factories beneath the brand new firms,” mentioned one other official.
He mentioned the restructuring would assist in overcoming numerous shortcomings within the current system of OFB by eliminating inefficient provide chains. The federal government has additionally determined to delegate the authority of the cupboard to an empowered Group of Ministers headed by Singh to determine on issues associated to the restructuring of the OFB.
At current, the federal government has to shell out round Rs 5,000 crore yearly to pay the salaries of the OFB workers. Moreover, it provides round Rs 3,000 crore to OFB as an operational price.
The ordnance factories have been arrange as “captive centres” to serve the wants of the armed forces, however they’ve been going through performance-related points for a very long time.
Story first revealed: Wednesday, June 16, 2021, 21:03 [IST]