Both Houses (Lok Sabha and Rajya Sabha) of Parliament passed the Essential Defence Service Bill that forbids employees engaged in the production of goods or services for the military from going on strike. The government is also going ahead with the corporatisation of the Ordnance Factory Board, with the board of directors selected for the seven new entities being constituted.
Government representatives said that the reforms will not take away any autonomy from the functioning of the factories but will bring in higher efficiency and competitiveness while keeping back their role as a key supplier of weapons and ammunition to the armed forces.
The Ministry of Defence (MoD) has chosen 27 officials who will form the interim board of the seven new public sector units. The 41 existing factories of the OFB will be distributed on one aspect of the military equipment.
Most of the officials selected, including the seven new chairman and managing directors (CMDs) are from the Indian Ordnance Factory Service. Two Indian Defence Accounts Service officers have also been selected on the boards of the Ancillary PSU at Nagpur and Opto-Electrics PSU at Dehradun.
An immediate concern for the board will be managing the OFB employees who have been threatening to go on strike against the corporatisation move. Officials said that the bill is not aimed at curbing peaceful protest but is designed to protect the forces that require a regular supply of equipment.
The bill mandates a penalty of up to two years in prison for those inciting strikes and one year in jail for those participating in such incidents, besides disciplinary action, including dismissal from service.
