Indo-US Defence Agreements will have serious impact on existence of DPSUs and Ordnance Factories – AITUC

Our major concern is giving red carpet welcome to big military industries, says C. Srikumar General Secretary of AIDEF

Lot of Defence Agreements are signed between India and US. Prime Minister Narendra Modi also during his visit to US and France have welcomed Military Industries of these Countries to partner with Indian Industries to meet the Defence domestic requirement and can also export from India .In this backdrop the National Working Committee of AITUC which met at Delhi on the 16th & 17th of July, 2023, discussed about the impact of these agreements on the existence and survival of the 41 Ordnance Factories and the Defence PSUs since these Industries are already struggling for workload especially the Ordnance Factories. After discussions the AITUC Working Committee passed an unanimous resolution which deals with Indias relation with NATO, deviation from Non-Alignment and peace ,and the Indo- US Defence Agreements on the existence of Defence PSUs and Ordnance Factories.

On this resolution passed by AITUC, C. Srikumar General Secretary of AIDEF stated that our major concern is giving red carpet welcome to big military industries and allowing these Industries to partner with Indian Private Corporates like Adani, L&T, Bharat Forge, TATA, Mahindra, Reliance, Solar Industries etc is going to have a very serious impact on the existence of Ordnance Factories. Many retired Senior Officers from Army and Ordnance Factories have already joined these Industries in different capacities. They will not only pass on their expertise and whatever information available in their pen drive to these industries, but will use their network and connections to favor these private industries at the cost of Ordnance Factories and DPSUs. We have brought this to the notice to the Ministry of Defence in a meeting held with us on the 13th of July 23.

Despite the Defence Minister’s direction to provide work to the 4 Ordnance Factories 4 Ordnance Factories under TCL which manufacture all types of protective clothing and equipment to the Soldiers, there are obstacles created in the Army Headquarters to not implement the directions of Defence Minister. Government at any cost, should not allow the Ordnance Factories and Defence PSUs to be destroyed in the interest of National Security and Defence preparedness in its enthusiasm to encourage Military Industries of NATO Countries and Indian Corporates in Defence Manufacturing.

The resolution passed in the AITUC National Working Committee meeting is published here for the benefit of the viewers of

Resolution on AITUC’s serious concern on India shifting towards NATO and the impact of Indo – US agreement on Defence in the geopolitical situations and Indian Public Sector Defence Industry and Ordnance Factories.

The Working Committee of AITUC in its meeting held at AITUC Bhawan, New Delhi on the 16th & 17th of July 2023 expresses its deep concern over the shifting of India toward NATO in contravention of its earlier policy of non-alignment and peace. In the ongoing war between Russia and Ukraine, instead of taking steps to restore peace, the NATO is supplying Arms and Armaments in huge number to Ukraine. The people of the world are aware of the NATO crimes and NATO means Wars, Militarization, Refugees, Starvation, Destruction and death of the people. The US, NATO and the European Union continue to attack many developing countries through their discriminations, embargoes and sanctions which has seriously affected the people of those countries.

The AITUC Working Committee is seriously concerned about the impact of the various Indo – US Defence agreements being signed in the recent past. These agreements takes the strategic and Military Cooperation between India and US further. These agreements are to only enhance the Defence Cooperation to promote the strategic interest of USA than India’s interest.

The Government of India and the Prime Minister has openly invited the Arms manufacturers of USA, France and Israel to partner with Indian Companies and produce Arms and Military Equipments in India for local consumption as well as exports. Thousands of Acres of lands are going to be allotted to these Companies in the UP Defence Industrial Corridor and Tamil Nadu Defence Industrial Corridor for establishing Military Industries. Already it is understood that 500 Acres of land is allotted to L&T for overhauling of T-90 Tank produced in one of the Ordnance Factory at Avadi, the HVF which is manufacturing T-90 Tank with Russian collaborations. At present the T-90 overhauling project is with HVF Avadi.

There is a danger of shifting this project to L&T Company. All these policy decisions will have serious impact on the existence of our Indian Defence Public Sector Industries and the 41 Ordnance Factories, which are already under the threat due to the Government’s apathy towards these Industries by not providing work for them. In this backdrop the Working Committee of AITUC urges upon the Government of India not to shift towards the NATO and to continue with the time tested policy of non-alignment and peace.

The AITUC further endorses the views of WFTU for unconditional and urgent dissolution of NATO. The AITUC calls upon the workers and the people to fight against the imperialist wars, converting India in to a Military hub of the NATO countries like US, France, Israel etc., and further urges upon the Government of India to strengthen our Indian Defence Public Sector industries and 41 Ordnance Factories for achieving self-reliance and Defence preparedness without depending upon NATO Countries. The people of the country and the world can live in peace, solidarity and cooperation only if the imperialist and NATO sponsored wars and militarization is stopped for which the dissolution of the NATO is essential.


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