AIDEF, INDWF, BPMS & CDRA Boycott Committee On Absorption Into Ordnance Factories DPSUs

The prolonged tussle between the Government of India and the employees of the 41 Ordnance Factories over corporatization continues, even four years after the Cabinet’s decision to convert the factories into seven Defence Public Sector Undertakings (DPSUs).

As per the Cabinet mandate, while corporatizing the Ordnance Factories, it was clearly stated that the newly formed entities must frame an HR Policy and Absorption Package not inferior to the terms and conditions that the employees currently enjoy as Central Government employees.

Initially, a two-year deemed deputation period was granted to these employees, which was later extended for another two years—until 31st December 2025.

In a recent meeting chaired by the Joint Secretary, Department of Defence Production, all four recognized federations—AIDEF, INDWF, BPMS, and CDRA—unanimously conveyed their firm stand:

“Employees will not resign from their Central Government service to join the seven DPSUs. They will continue as Central Government employees on deemed deputation in these Corporations until retirement.”

However, on 14th July 2025, the Ministry of Defence instructed all seven DPSUs to proceed with the HR policy they have developed and initiate discussions with federations/unions on the absorption packages. Following this directive, one DPSU, Armoured Vehicles Nigam Limited (AVNL), wrote to the Ministry on 16th July 2025, proposing the constitution of a committee to deliberate on the absorption process.

This move sparked strong opposition. The four major federations—AIDEF, INDWF, BPMS, and CDRA—expressed their resentment and jointly communicated via a letter dated 21st July 2025, declaring their boycott of any committee on absorption. The federations reiterated their sole demand:

The Government must publish a formal notification stating that employees on deemed deputation in the seven DPSUs will retain their status as Central Government employees until retirement.

With this strong and united stance from all recognized employee organizations, the ball is now in the Government’s court. Will the Ministry of Defence heed their demand and issue the much-anticipated notification?

As the situation unfolds, stakeholders await the Government’s next move. Meanwhile, the full contents of the joint letter dated 21.07.2025, addressed to the Secretary, Defence Production, are being published here for the benefit of the viewers of www.indianpsu.com –