Corporatisation of OFB will improve autonomy
The Cabinet Committee on Security has approved to convert Ordnance Factory Board (OFB), a subordinate office of Ministry of Defence, into one or more than one 100% Government owned corporate entities, registered under the Companies Act 2013.
The Corporatisation of OFB will improve its autonomy, accountability and efficiency in Ordnance Supplies, said the Minister of State for Defence Shripad Naik told Rajya Sabha on 19 Sept 2020. The approval was given on 29 July 2020.
The Government has taken note of the strike by workers of OFB against the proposed corporatisation and their concerns in the notice dated 4 August 2020 from the three recognized Federations of Defence Civilian Employees, proposing to call an indefinite strike w.e.f. 06.00 am of 12 October 2020 by the Defence Civilian Employees of Ordnance Factories against the Government move to corporatize OFB.
An Empowered Group of Ministers (EGoM) has been constituted under the Chairmanship of Minister of Defence to oversee and guide the entire process of the corporatisation of OFB, including transition support and redeployment plan of employees while safeguarding their wages and retirement benefits.
OFB products are priced on a cost-based methodology without charging any profit over the cost of production for supply to the armed forces.
Since OFB is nominated as a production agency for the supply of core items to the armed forces, no comparison with international prices can be made. #banking #corporatisation #defence #manufacturing /fiinews.com
