In tune with a decision by the Union Cabinet, the Ordnance Factory Board (OFB) will stand dissolved with effect from October 1 and its assets, employees and management are being transferred to seven newly established defence public sector undertakings (DPSUs), according to an official order by the Defence Ministry.
The name of the seven defence PSUs are Munition India Ltd, Armoured Vehicles Nigam Ltd, Advanced Weapons and Equipment India Ltd, Troop Comforts Ltd, Yantra India Ltd, India Optel Ltd and Gliders India Ltd, the ministry said in its order. In a major reform initiative, the Cabinet on June 16 had approved a long-pending proposal to restructure the over 200-year-old Ordnance Factory Board that operates 41 ammunition and military equipment production facilities into seven state-owned corporate entities to improve its accountability, efficiency and competitiveness.
Defence Minister Rajnath Singh already clarified that there will be no change in service conditions of nearly 70,000 employees of the organisation and the decision to corporatise the OFB is driven by efforts to boost India’s defence manufacturing sector.
