The government on Wednesday approved a long-pending proposal to restructure the nearly 200-year-old Ordnance Factory Board (OFB). The archaic organisation is set to be split into seven companies to improve productivity and create specialisations in weapons manufacturing.
The plan which was raised almost two decades ago was cleared by the Union Cabinet on Wednesday and will lead to greater accountability and efficiency of the 41 factories that operate under the OFB banner.
“This is a historic step. We have ensured that there will be no change in the service conditions of the employees. It will help improve accountability and efficiency,” Defence Minister Rajnath Singh said.
Under the new reforms, seven new government-owned corporate companies will be created on the lines of the existing Defence Public Sector Units (DPSUs) like Hindustan Aeronautics Limited (HAL) and Bharat Electronics Limited (BEL) with professional management. The entities will be engaged in specialised work like ammunition and explosives, vehicles, weapons, troop comfort, optoelectronics, and parachutes.
“The restructuring is aimed at transforming the factories into productive and profitable assets, deepen specialisation in the product range, enhance competitiveness, and improve quality and cost-efficiency,” officials concerned with the matter said.
All matters connected to the implementation of the restructuring have been entrusted to the empowered group of ministers led by Rajnath Singh, that will work in the coming months to ensure a smooth transition. The restructuring is expected to be introduced this year.
