Corporatisation of Ordnance Factory Board: Centre tells employees they have nothing to worry

Employees' pay scales, allowances, career progression, leave, medical facilities and other service conditions will be accorded as per the same rules, regulations and orders as applicable to the central government servants, Minister of State for Defence Ajay Bhatt said.

The Centre on Monday enumerated the steps being taken to safeguard the interests of the employees of Ordnance Factory Board post corporatisation.

The government had decided to convert the production units of OFB into seven Defence Public Sector Undertakings to enhance functional autonomy, efficiency and unleash new growth potential and innovation in ordnance factories.

The decision to go ahead with the corporatisation of the OFB was taken in May 2020. The government has since then held various discussions with the OFB employees federations regarding corporatisation. 

The employees were mainly concerned about safeguarding their interests.

In a written response to Rajya Sabha MP Digvijay Singh, Minister of State for Defence Ajay Bhatt on Monday said that a new Defence Public Sector Undertakings and Directorate of Ordnance Factories would be instituted in this regard.

He said that all employees of OFB (Group A, B & C) from production and non-production units would initially be transferred to the seven DPSUs on terms of foreign service without any deputation allowance for a period of two years from the appointed date.

All the employees of OFB Headquarters, OF Schools, OF Hospitals and OFB New Delhi Office would be initially transferred for a period of two years to the Directorate of Ordnance Factories under the Department of Defence Production.

The minister further noted that till the time the employees remained on deemed deputation to the new entities, they would continue to be subject to all rules and regulations as are applicable to the central government servants.  

Their pay scales, allowances, career progression, leave, medical facilities and other service conditions will be accorded as per the same rules, regulations and orders as applicable to the central government servants, he said.

Retirees and existing employees' pension liabilities will continue to be borne by the government, he added.